The economist also expressed confidence in the future of Asia, saying that this region is full of entrepreneur spirit, perfectly capable of adopting modern technology and there is a lot of people here who have those capacities.

"So in the long run, this region will be enormously thriving and will be the center of the world economically and in other respects," said Krugman.

Krugman further mentioned that the US Federal Reserve should not raise interest rate this year even though he suspected they would.

AFF 2015 concluded on Tuesday. The two-day forum, which focused on the theme of "Asia: Sustainable Development in a World of Change," highlighted different sections of speeches, dialogues and thematic workshops.

The forum also examines other important issues such as global economic outlook, China's shifting economic realities, Asia's positioning and ambitions, as well as the outlook and investment opportunities in healthcare.

Over 2,400 participants, including global leaders in government, finance and business, took part in AFF 2015 to exchange insights and explore business opportunities.