ADB: Global economy to recover quickly after Japan disaster

May 3, 2011, 6:31 GMT

Hanoi - The second half of 2011 should see recovery in the global economy after the earthquake and tsunami in Japan, the president of the Asian Development Bank (ADB) said Tuesday.

'I think the disruption to the supply chain could be overcome relatively quickly,' Haruhiko Kuroda said ahead of the bank's annual meeting in Hanoi Thursday.

Many Japanese factories feeding supply chains across the world are not located in tsunami-hit areas and were therefore able to recover quite quickly, he said.

The first half of 2011 saw 'depressed growth,' which would accelerate in the second half, positively affecting the Asian economy.

However, 'given the many natural catastrophes that continue to affect the region, disaster risk management must also be made a priority,' Kuroda said.

The ADB's annual meeting is to focus on the pace of recovery from the global economic crisis, inflation control, environmental degradation and climate change.

Persistent poverty also had to be addressed if Asia is to enrich and evolve this century, Kuroda said.

The meeting will also include discussions on setting up a global financial system that 'can withstand shocks,' Kuroda said.

According to the Asian Development Outlook 2011 published by the ADB in early April, the region's gross domestic product is expected to grow 7.8 per cent in 2011 and 7.7 per cent in 2012.