Asians are well placed to become as wealthy as their peers in Europe by

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mid-century, provided its leaders take "bold, innovative action" to sustain rapid growth and tackle growing inequalities, says a study by the Asian Development Bank (ADB).

The study, titled, "Asia 2050 – Realising the Asian Century," said if Asia continues on its recent trajectory, by 2050, it would account for half of the world's economic output and another three billion additional Asians would have become "affluent" by current standards.

"Asia is in the midst of a historic transformation," the report said, adding that Asia's leaders will have to manage multiple risks and challenges to realise the "Asian Century".

Asia's leaders must take bold, innovative action to sustain rapid growth and tackle growing inequalities, as well as address environmental challenges and the rising tide of urbanisation if the region is to reach its full potential by the middle of this century, the ADB said.

"Prosperity is earned. Asia has indeed done well over the past 40 years. Let us work together to ensure we stay on the path over the next 40 years," said ADB President Haruhiko Kuroda during the launch of the Asia 2050 book in Tokyo.

"By nearly doubling its share of the global gross domestic product (GDP) to 52 per cent by 2050, Asia would regain the dominant economic position it held some 300 years ago before the industrial revolution," the study said.

The ADB, however, warned that fast-growing economies like the People's Republic of China, India, Vietnam, and Indonesia -- the countries which would lead Asia's march to prosperity -- could fall victim to the "middle-income trap".

A middle income trap is a situation wherein growth is followed by periods of stagnation or even a decline and countries are sometime stuck at low growth rates. Besides, their competitiveness vis-a-vis other low-income, low-wage economies also declines.

Between 2010 and 2050, these seven fast-growing economies, including India, would account for as much as 87 per cent of total GDP growth in Asia and almost 55 per cent of global GDP growth.

"They will thus be the engines of not only Asia's economy, but also the global economy," the ADB said.

Kuroda further said that as Asia's affluence rises, competition for the world's finite natural resources will increasingly intensify.

"Asia must take radical steps now toward investing in innovation and clean technology. This will ensure that our quest for prosperity for all does not end in an environmental gridlock," he added.

Asia's re-emergence as an economic powerhouse will bring with it new responsibilities, particularly in helping to manage the global commons, such as free trade, climate change mitigation and financial stability, the ADB said.