Asian Development Bank 2018 Annual Report: Working Together for a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific

Abstract

The Asia and Pacific region is now a powerful engine for the world economy, contributing 60% of global growth. The region's economic expansion has averaged 6.8% a year since the 2008–2009 global financial crisis—underpinned by stable economic conditions that have accelerated development and fostered poverty reduction. While the outlook for growth remains positive, several development challenges remain. The countries of Asia and the Pacific are experiencing rapid urbanization, huge demographic shifts, growing environmental pressures, and large infrastructure deficits. Income inequality has risen in several countries and social disparities persist. Meanwhile, an increasingly interconnected and interdependent world brings the potential for faster transmission of global shocks. Despite its strong economic growth, Asia and the Pacific is home to 264 million people living in extreme poverty (on less than $1.90 a day). An additional 836 million people are living in poverty (on an amount between $1.90 and $3.20 a day)—with many at risk of being pushed into extreme poverty through economic downturn or external shocks. How economies in Asia and the Pacific utilize new and emerging technologies will be important in meeting development challenges. Technological advancements are broadening the platforms for education and health care, making renewable energy competitive and expanding access to modern communications. The challenge for the region is to capitalize on these opportunities while managing the disruptive impacts—such as labor displacement, cyber fraud, and data theft—that some technologies may have on society.