The Asian Development Bank (ADB) says it expects most Asian economies to rebound in 2013, with prospects remaining healthy if regional growth stays above 6 percent.

Speaking at the Foreign Correspondents' Club in Hong Kong on Thursday, President of the ADB Haruhiko Kuroda says China now faces a challenge of rebalancing its economy.

He has joined the call for China to shift its growth focus from investment to domestic consumption.

The global economic outlook continues to be clouded by worries over the eurozone debt crisis and the so-called fiscal cliff looming for the US.

Asia has not been spared from the fallout, feeling the pressure from declining exports to developed economies.

But recent data suggests things might be picking up, especially for the world's second largest economy.

And some economists expect China's fourth quarter numbers will provide more evidence of an upturn.

And as China's new leaders take control, the ADB chief says they must focus on further liberalising the economy.

Mr Haruhiko Kuroda says : "Investment in China is huge. Investment GDP ratio is really amazingly high. But I think now the challenge...to complete the rebalancing process is to encourage consumption. How to do it? Of course household income must be increased and household propensity to consume must be increased."

The ADB chief expects most regional economies to see a slight acceleration in growth next year, though external pressures from the US, Europe and Japan will continue to drag.

He adds : "But compared with a few years ago, particularly compared with 2009 and 2010 and even compared with 2011, the growth rate in 2013 next year is still not so high."

Still, he says, prospects remain healthy if regional growth stays above 6 percent.

In its report out last month, the Asian Development Bank cut its regional growth forecast to 6.1 percent in 2012, compared to the 7.2 percent pace in 2011.

It expects regional growth to pick up to 6.7 percent in 2013.

channelnewsasia.com