MANILA, April 6 (Xinhuanet) -- The Asian Development Bank (ADB) said on Wednesday that the developing countries in Asia achieved their best growth performance in 2004 since the Asian financial crisis of 1997-98, with the region's aggregate real gross domestic product (GDP) expanded by a 7.3 percent rate.

    In its semi-annual report on Asian economic development, Asian Development Outlook 2005, the ADB also said that "robust growth" will prevail in Asia in the 2005-2007 period given the strong economic momentum in most regional economies together with a favorable external environment.

    "Average real growth is expected to be between 6.5 percent and 6.9 percent, supported by more buoyant domestic demand and strengthening intraregional trade," said the report.

    The ADB report covers all Asian countries and regions except Japan and the Democratic People's Republic of Korea. It also covers South Pacific developing countries.

    The report said that with the exception of Pacific developing countries, nearly all developing Asian economies grew by more than 5 percent in 2004, with the best performers being China, Hong Kongof China, India, Kazakhstan, Malaysia, Singapore, Uzbekistan and Vietnam.

    It said that the overall growth performance was underpinned by continued strength in external demand, complemented by more buoyant domestic demand, with exports by the region rising by 25.5 percent as compared with 19.3 percent in 2003.

    The region was the beneficiaries of robust growth in major industrial countries, in particular the United States, said the report. Related with the 3.5 percent US economic growth, a global revival of electronic market, for which many Asian countries are major exporters, has greatly contributed to the growth, it said.

    Rapid income growth for several years in a row in the region, together with continued high oil prices, also led to surging imports in most Asian economies, as reflected in narrowing trade and current account surpluses or in widening deficits in some countries, said the report.

    It said a major feature of economic developments in the region last year was a marked revival of business investment, particularly in East Asia -- except China -- and Southeast Asia where it has been lagging since the Asian financial crisis.

    In most countries in South Asia and the energy-rich Central Asia, investment spending also showed a healthy upward trend in 2004, said the report.

    On the supply side, the agricultural sector has been growing very fast in the region except India, increasing incomes of the farmers, it said.

    Inflation remained subdued despite high growth and high oil prices, although inflation remains a major concern for a number of countries, it said.

    Foreign reserves of the region also grew to about 1,624 billion US dollars by the end of last year, another sign of strong economic growth, according to the report. Enditem