The U.S. has gone through it, so have Europe and Japan. Now it is Asia's turn to endure a period of austerity, one economist tells CNBC.
Asia, often regarded as one of the world's key growth engines, has seen its economic conditions deteriorate in recent years and must now implement reforms to get back on track, Rob Subbaraman, chief economist for Asia ex-Japan at Nomura said on Wednesday.
(Read more: Ten trends that will shape Asia in 2014: Carnegie)
"This year for Asia needs to be one of austerity," he told CNBC Asia's "Squawk Box." "The U.S. has had it, Europe's had it, Japan's had it, it's Asia's turn. Asia needs to basically raise the cost of capital and implement supply-side reforms which will be painful in the short run."
India and Indonesia came under fire in the second half of last year for holding large current-account deficits and being slow to implement structural reforms.
Some of the Asian economic data at the start of the New Year meanwhile has proven disappointing.
Taiwan exports fell unexpectedly last month, Malaysia's November export data fell well short of expectations and manufacturing and service sector activity in powerhouse China slowed in December.