The annual Asian Development Outlook analyzes economic performance in the past year and offers forecasts for the next 2 years for the 45 economies in Asia and the Pacific that make up developing Asia. Global headwinds notwithstanding, developing Asia will continue to contribute 60% of world growth. This edition highlights the need to invigorate developing Asia’s potential growth, whose decline since its 2007 peak explains much of the region’s growth slowdown since the global financial crisis. To ensure a healthy future for potential growth, Asia must employ the full range of policy responses to augment labor supply, improve labor productivity, enhance institutional quality, and maintain macroeconomic stability.