China's economic rebalancing benefits region .

Asian economies are sailing in choppy waters, facing severe headwinds from an uncertain and challenging global environment, but the region also has strong points in favor.

The global recovery has been uneven and weaker than expected. On top of that, global trade has been sluggish and financial conditions have been volatile. The rise of China as a global economic superpower has created challenges of its own, as China's necessary rebalancing from manufacturing toward services and investment to a consumption-driven economy-critical for both China's and global growth over the medium term - remains bumpy.

As elsewhere, many Asian economies face risks associated with natural disasters and geopolitical and domestic political uncertainty. But all is not doom and gloom, as Asia has considerable strengths and remains the major engine of the global economy: it continues to provide nearly two-thirds of global growth. In addition, the region has policy buffers such as current account surpluses and high reserve levels, and has used macro-prudential policies well to help bolster financial stability. It is likely to benefit from further economic integration and regional and multilateral trade agreements such as the Trans-Pacific Partnership.