NADI, Fiji—The Asian Development Bank (ADB) sees free trade as key to sustainable economic growth and the Manila-based multilateral lender expressed it support for moves to combat protectionism, bank president Takehiko Nakao said Friday.
“Economic growth in the region remains solid, while there is much discussion about a slowdown and uncertainties in the global economy. Domestic consumption and investment have provided a strong growth foundation. In some countries, growth is even accelerating. Countries need to continue to pursue prudent macroeconomic policies, implement structural reforms, and invest in human capital and infrastructure,” Nakao told the governors who represent its 68 member-countries during the lender’s 52nd annual meeting here.
Nakao said economies across the Asia-Pacific region were expected to grow by an average 5.7 percent this year.
“If we can grow 6 percent annually, the economy will double in 12 years,” he said.
However, Nakao warned that trade tensions remained a concern, a downside risk to the rosy outlook.
“If tensions escalate, they could seriously undermine consumer and investor confidence and weaken growth in the region,” he warned.
As such, Nakao said maintaining open trade and investment regimes was key to vibrant and sustainable growth.
“In this respect, the ongoing efforts by Asian governments to promote new multilateral trade agreements within the region and beyond are encouraging,” he added.
To support not only sustained economic growth but also inclusive development in the region, Nakao said the ADB would focus on six areas supportive of its “Strategy 2030” launched in July last year.
Nakao said the six focus areas were as follows: addressing remaining poverty and reducing inequalities across Asia-Pacific; accelerating progress in gender equality; focusing on climate mitigation and adaptation efforts; continuously supporting regional cooperation and integration; expanding private sector lending, equity investments and guarantees, and using concessional resources effectively.
“There has been much discussion lately about the value of multilateralism. I am a firm believer in the multilateral system, which includes multilateral development banks such as the ADB. National interests and multilateralism go hand in hand because we need international cooperation and collective action for the interests of people in nation states and the world,” he said.