Asia needs trade integration to help it ride out an expected slowdown in global economic growth due to European and U.S. debt woes, Ganeshan Wignaraja, principal economist at the Asian Development Bank, said on Tuesday.Rather than putting up protectionist barriers and keeping out imports, emerging Asian countries would feel regional integration is a much better way to take advantage of strong domestic demand within the region, Wignaraja said."The new era for the world in the next three to five years is one of slow growth compared to what we might expect now," Wignaraja, an expert on economic integration in Asia, told Reuters in an interview.He attributed this sober view to the combination of high public debt in the United States and Europe, as well as the lack of room these countries have to ease monetary policy or expand fiscal spending."The combination means the outlook is very much oriented towards developing country markets," he said.But Wignaraja added that the debt problems in developed countries were unlikely to have a major negative impact on emerging Asian economies such as China.Regional trade integration has come into the spotlight as global trade talks stall, with world leaders giving up on a commitment to complete the Doha trade round this year.Wignaraja also said he doesn't expect any "dramatic" shift as China moves towards a more flexible currency regime.A more measured change would be good for China as it pushes into more high-skilled production from its current labour-intensive output, he said."A gradual change is perhaps an optimal way to go."(Editing by Hugh Lawson)News posted by www.newsinfoline.com
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