According to a new study commissioned by the Asian Development Bank (ADB) entitled Global Financial Turmoil and Emerging Market Economies: Major Contagion and a Shocking Loss of Wealth?, losses on financial assets in developing Asia in 2008 totaled $9.6 trillion, or just over one year's worth of gross domestic product (GDP).
Asia was hit harder than other parts of the developing world because the region's markets have expanded much more rapidly. The value of financial assets to GDP rose to 370% of GDP in developing Asia in 2007 from 250% of GDP in 2003. In Latin America, the ratio only rose by 30%, with the result that estimated losses on financial assets were a much lower $2.1 trillion, or 57% of GDP.
ADB President Haruhiko Kuroda and other experts will discuss the study at the 'South Asia Forum on Impact of the Global Economic and Financial Crisis', a two-day conference being held at ADB headquarters in Manila starting today.
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