A fragile recovery in advanced nations means Asia will increasingly play a more vital role in the global economy. That’s according to Singapore’s Trade and Industry Minister Lim Hng Kiang. He was speaking to 1,400 participants of the 8th Annual Citi Asia Pacific Investor Conference here.
Even after two rounds of quantitative easing, the US economy is witnessing a patchy recovery, while investors are still concerned about the sovereign debt overhang in Europe. But Asian economies are faring much better.
Mr Lim said the region’s resilience will help it lead the global recovery. “The outlook for Asia is positive. Although the region’s growth is expected to settle to a more sustainable pace, Asia will remain at the forefront of the global recovery,” Mr Lim said. “Despite facing challenges from large capital inflows and inflation, I am confident that Asian policy-makers will make appropriate policy adjustments in order to achieve long-term sustainable growth.”
Mr Lim added that infrastructure financing is likely to be a major driver of demand for investments in Asia. He said the Asian Development Bank estimated that US$8 trillion in infrastructure spending is needed in the 10 years leading up to 2020, to support Asia’s growth.