Record demand for ADB support in 2015, report reveals

22 Apr 16

The Asian Development Bank saw record demand for its resources in 2015, according to its annual report, as countries in the region sought to boost sluggish growth, reduce inequality, and tackle climate change risks.

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Tokyo's high-speed railway

"Monumental" infrastructure needs are pushing demand for ADB loans to record highs.

 

The bank’s 2015 annual report shows that its total funding for projects stood at $27.17bn in the year, compared to $22.93bn in 2014 and $20.92bn the year before.

ADB president Takehiko Nakao noted growing demand reflected the region’s persistent levels of poverty, despite impressive growth, and “monumental” development and infrastructure needs.

The region suffers from a massive infrastructure deficit, amounting to around $800bn worth of investment annually, according to ADB estimates.

This is equal to around 6% of gross domestic product, compared with current investments of about 2-3% across the region.

The bank said this paucity of funding was a key cause of constraint on economic growth and poverty reduction in the region, while economies have also been hampered by the slowdown in China.

Earlier this month, the World Bank also announced unprecedented demand for its loans driven by developing countries struggling with the global economic downturn.

The ADB saw one of the biggest increases in its cofinancing, which jumped by a record 16% compared to last year, amounting to $10.74bn.

Its private sector operations also saw a big increase, from $1.92bn in 2014 to $2.63bn. Its loans and grants totalled $16.29 and technical assistance accounted for $141. 

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