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DPA
Manila
Asia and the Pacific’s economy was expected to contract less severely this year as China recovers faster than expected from the effects of the coronavirus pandemic, the Asian Development Bank (ADB) said Thursday.
Developing Asia’s aggregate gross domestic product was forecast to contract by 0.4 per cent this year, an improvement from the previous estimate of negative 0.7 per cent, according to an update on the Manila-based bank’s annual Asian Development Outlook.
The region’s economic growth was expected to pick up and expand by 6.8 per cent in 2021, the update added.
“The outlook for developing Asia is showing improvement,” said ADB Chief Economist Yasuyuki Sawada. “Growth projections have been upgraded for China and India, the region’s two largest economies.”
China, where the COVID-19 outbreak was first reported one year ago, is projected to grow 2.1 per cent this year, up from a forecast of 1.8 per cent in September. The region’s largest economy is expected to grow 7.7 per cent in 2021. India, the region’s second-largest economy, is forecast to contract 8 per cent this year, down from the initial projection of negative 9 per cent. It will rebound in 2021, with growth of 8 per cent.
“A prolonged pandemic remains the primary risk, but recent developments on the vaccine front are tempering this,” Sawada said.
“Safe, effective and timely vaccine delivery in developing economies will be critical to support the reopening of economies and the recovery of growth in the region,” he added.
Manila
Asia and the Pacific’s economy was expected to contract less severely this year as China recovers faster than expected from the effects of the coronavirus pandemic, the Asian Development Bank (ADB) said Thursday.
Developing Asia’s aggregate gross domestic product was forecast to contract by 0.4 per cent this year, an improvement from the previous estimate of negative 0.7 per cent, according to an update on the Manila-based bank’s annual Asian Development Outlook.
The region’s economic growth was expected to pick up and expand by 6.8 per cent in 2021, the update added.
“The outlook for developing Asia is showing improvement,” said ADB Chief Economist Yasuyuki Sawada. “Growth projections have been upgraded for China and India, the region’s two largest economies.”
China, where the COVID-19 outbreak was first reported one year ago, is projected to grow 2.1 per cent this year, up from a forecast of 1.8 per cent in September. The region’s largest economy is expected to grow 7.7 per cent in 2021. India, the region’s second-largest economy, is forecast to contract 8 per cent this year, down from the initial projection of negative 9 per cent. It will rebound in 2021, with growth of 8 per cent.
“A prolonged pandemic remains the primary risk, but recent developments on the vaccine front are tempering this,” Sawada said.
“Safe, effective and timely vaccine delivery in developing economies will be critical to support the reopening of economies and the recovery of growth in the region,” he added.
