Asia and the Pacific’s quick rebound from the crisis can be sustained by robust private sector investments, the Asian Development Bank stressed.
In an institutional investors’ round-table discussion during the bank’s ongoing annual meeting, ADB Director General for Private Sector Operations Philip Erquiaga said commercial lenders and international financial institutions are still risk-cautious if not risk-averse outside Asia’s major markets.
A recent international survey, the bank said in a press release, indicates that institutional investors are expected to significantly scale up their investment allocations in the region this year, particularly in China and India.
“The question we have to ask is whether the People’s Republic of China and India can act as engines to catalyze investments in the rest of the region,” Erquiaga said during the event, which drew attention to private sector opportunities for regional infrastructure and trade across Central Asia.
Asia needs an estimated USD8 trillion in overall infrastructure investment alone between now and 2020, according to ADB.