Notwithstanding the less hospitable external environment, the Asian Development Outlook (ADO) 2001 is cautiously optimistic that the prospects for the Asian and Pacific region remain moderate and will improve by 2002. However, there are significant challenges that the region has to address including taking appropriate policies maintain stable macroeconomy promote prudent financial policies adopt sound regulatory practices There are also significant downside risks in the near-term outlook if the global slowdown persists.
