Manila  - The global financial crisis has slashed the value of financial assets worldwide by a massive 50 trillion dollars last year, a study by the Philippines-based Asian Development Bank (ADB) said Monday.

Developing Asia suffered more losses than other emerging market regions at 9.6 trillion dollars, according to the study, Global Financial Turmoil and Emerging Market Economies: Major Contagion and a Shocking Loss of Wealth?

The study noted that Asia was hit harder than other parts of the developing world because the region's markets have expanded much more rapidly.

It said the value of financial assets to gross domestic product (GDP) rose to 370 per cent of GDP in developing Asia in 2007, from 250 per cent of GDP in 2003. In Latin America, the ratio only rose by 30 per cent, thus its losses were much lower at 2.1 trillion dollars.

"This is by far the most serious crisis to hit the world economy since the Great Depression," ADB president Haruhiko Kuroda said. "While this crisis originated in the US and some European countries, by now no region or country is insulated."

"I am afraid things may get worse before they get better," he added. "However, I remain confident that Asia will be one of the first regions to emerge from it, and it will emerge stronger than ever before."

The ADB said the estimates represent losses in equity and bond markets, including those backed by mortgages and other assets, and the depreciation of many currencies against the US dollars. They do not include financial derivatives such as credit default swaps.

The study said the next 12 to 18 months "will be very difficult" for most emerging market economies and recovery can only be envisaged for late 2009 or early 2010.

"There has been no destruction of physical and human capital, boding well for a strong recovery, possibly more cautious and sustainable, after the adjustments in the financial markets are worked through over the next year or so," it added. (dpa)