In what the groom saw, I hope it will be helpful to you. Asian Development Bank President Kuroda talks about the impact of the financial crisis on Asia. November 17, 2008 16:17 Ministry of Commerce website Asian Development Bank President Haruhiko Kuroda in his speech recently

, talked about the impact of the financial crisis on Asia and the challenges Asia faces.

Kuroda said that as the crisis deepens, its impact on economic growth will gradually become apparent.

Investors are already feeling the pain of the crisis.

So far this year, US$100 billion of foreign capital has flowed out of the region's stock markets, with market capitalization shrinking by 40-60%.

Many countries are facing liquidity squeezes.

Recent economic data shows that Asia's large economies are cooling faster than expected.

The region's economic downturn is inevitable and will affect Asian people's efforts to improve their living standards.

Kuroda said coordinated national and regional actions are now needed to restore liquidity.

Developing countries in Asia must adopt appropriate fiscal and monetary policies to respond to the economic downturn; sufficient funds must be mobilized to develop priority projects; the liquidity of the banking system must also be guaranteed; and existing regional mechanisms must also be strengthened.

One of the manifestations of uncertainty in the financial crisis is the volatility of stock and currency markets.

New trade data, unemployment reports, and falling industrial orders are all signs that the global downturn is heading into recession.

The deleveraging of the financial system has severely damaged Asian stock markets. In recent weeks, Asian stock indexes have fallen more sharply than those in the United States, Europe and Japan, and sovereign lending has begun one after another.

Offshore bond issuance also fell sharply.

Many Asian countries are experiencing difficulties in investment financing and debt financing.

The dollar borrowing costs of Asian banks have risen sharply, seriously affecting Asia's export trade financing.

The US, Europe and Japan markets account for more than 60% of the exports of developing countries in Asia.

As the economies of major developed countries slow down sharply, Asian exports will also decline.

Industrial production will slow down and the retail industry will lose its vitality.

The financial crisis has obviously posed severe challenges to Asia. In the short term, Asia's economy and financial system are facing pressure from the global credit crunch.

The global economic outlook is bleak and both domestic and external demand will decline.

In 2007, the economies of developing countries in Asia grew by 9%. It is expected that Asia's GDP growth in 2008 will decrease by 1.5% compared with the previous year.

There is a possibility of further decline in 2009.

Kuroda said that as developing countries in Asia have learned the lessons of 10 years ago, governments have adopted good macro policies, companies have improved their balance sheets, and banks have reduced non-performing loans.

The fundamentals of most economies are stable, and large foreign exchange reserves have helped buffer the contagion of the crisis.

Therefore, the possibility of a financial crisis in Asia is unlikely.

Ongoing financial market instability and worsening global credit conditions will further impact economic growth.

Tightening credit means less private capital investment in Asia, affecting financing for Asia's priority development projects - infrastructure, health, education and technological innovation - and threatening the region's long-term economic growth potential and poverty reduction capabilities.

Therefore, he believes that response measures need to be taken at the national, regional and global levels.

At the national level, measures are needed to ease tight credit conditions globally while providing safety nets for severe victims.

The current reduction in inflationary pressure is conducive to interest rate cuts and the implementation of loose monetary policies. Some countries have also adopted tax cuts and other fiscal measures.

Crisis management frameworks should be strengthened at the regional level.

It is necessary to review emergency plans, pay attention to inter-bank lending issues, ensure adequate deposit insurance and public capital adjustment plans, and the government provides guarantees for bank funds.

In addition, liquidity risk management and bank supervision should be strengthened.

At present, there is broad consensus that the existing 13 mechanism should be used to carry out regional financial cooperation and establish a fund of US$80 billion.

By expanding and multilateralizing the Chiang Mai Agreement, the fund is not used to buy toxic assets but to provide emergency capital injections to liquidity-starved countries.

ADB's recent report advocates the establishment of an "Asian Financial Stability Dialogue" mechanism to initiate dialogue among finance ministers, central bank governors, and other financial regulators to coordinate positions in response to the crisis.

Multilateral development banks also have an important role to play.

It is necessary to ensure that developing countries in Asia have access to financing to obtain funds for the development agenda, especially in areas such as infrastructure, education and health, to achieve poverty reduction goals.

At the international level, after all, global crises require global solutions.

In addition to short-term actions to stabilize finance, we also need long-term plans to reform the regulatory and institutional framework of the global financial system.

We expect to hear a strong "Asian voice" at the G20 summit.

As its influence on the global economy grows, Asia must play a role on all occasions.

Asia will shoulder greater responsibilities as a cooperative and responsible partner in addressing global challenges.

It must be noted that Asia has two sides. With every capital city and financial center, there must be a slum.

The challenge facing Asia is to narrow the gap between rich and poor.

Inclusive growth, environmentally sustainable growth, and integration into the regional and global economies are the three goals of ADB’s “Strategy 2020”.