Policy Paper: Enhancing ADB's Response to the Global Economic Crisis: Establishing the Countercyclical Support Facility

Abstract

The financial crisis that originated in a few developed countries has rapidly spread to the rest of the world. With the major industrial countries already in or close to recession, the global slowdown is expected to be deeper and much more prolonged than previously anticipated. Developing Asia, which initially looked well positioned to weather the global crisis, has come under more pressure. While the degree of impacts varies, all regions in Asia and the Pacific are likely to experience significantly lower gross domestic product (GDP) growth rates in 2009 (averaging 3.4%), compared with 2008 (6.3%) or, except for the Pacific, the pre-crisis record (9.5%) of 2007.