"Despite slowdown in China, Asia is going to witness a growth rate of 5.7 per cent this year and we expect same level of growth next year," he said on the opening day of 49th ADB annual meet here.
India will be represented by Finance Minister Arun Jaitley and Economic Affairs Secretary Shaktikanta Das.
"Asia as a whole has been growing in this decade even after the global financial crisis... India, Vietnam, Cambodia, Myanmar and Bangladesh are keeping very robust growth. So, I am very positive about Asian economic conditions," he said.
"In many countries, the population remains young and is growing. This will bring large demographic dividends if we can create quality jobs. The middle class is expanding providing a basis for strong consumption," he said.
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There is still much scope to grow to catch up with advanced economies, he stressed.
Asked about the capital increase, Nakao clarified that ADB
does not require additional funds at the moment.
Capital increase could be general or special, he said, adding that "we may seek special capital increase which could increase voting rights of donor nations".
"Exchange markets and stock markets are more stable. India, Indonesia and so on are more confident of management of these issues. Asia must be mindful of the outflow of capital," he said.
ADB, Nakao said, is ready to help countries battling the impact of lower commodity prices on their public finances.
Last year, USD 1 billion support was given to Kazakhstan to maintain social sector spending in the face of lower revenues due to oil price decline.