Although Asia was not directly affected by the Great Financial Crisis (GFC) of 2008-2009, the region’s growth momentum was disrupted. From an average of 8.3% during 2006-2010, GDP growth in the region fell to 5.9% in 2015.
The Asian Development Bank recently launched its Asian Development Outlook 2016. This year’s theme chapter analyses the causes of the decline in growth by looking at the productive capacity of the region, or its potential growth. The study estimates potential growth for 23 Asian economies, analyses the determinants of potential growth, and discusses whether the decline in the region’s growth can be referred to as a ’new normal’ of lower growth, or whether it is temporary and growth will be back to what it was before the GFC.