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ADB cuts developing Asia 2021 growth outlook to 7.1%

The Asian Development Bank (ADB) has lowered its 2021 economic growth outlook amid ongoing concerns about the COVID-19 pandemic. According to the latest information from a major economic publication, Asian Development Outlook (ADO) 2021, the agency forecasts growth of 7.1% this year. The forecast for the region was 7.3% in April.

The growth outlook for the region in 2022 has been raised from 5.3% to 5.4%. According to a press release, new variants of COVID-19, outbreaks in new regions, various levels of restrictions and reinstatement of blockades, and slow and uneven deployment of vaccines are squeezing the outlook for the region. That is.

Joseph Zveglich, Jr., Chief Economist at ADB, said:

The Asian Development Bank (ADB) has lowered its 2021 economic growth outlook amid ongoing concerns about the COVID-19 pandemic. According to the latest information from a major economic publication, Asian Development Outlook 2021, the agency expects growth of 7.1% this year. The forecast for the region was 7.3% in April.

“Policy measures focus not only on containment and vaccination, but also on continued support for businesses and households after the pandemic has subsided and began to recover, and a shift in direction to adapt to the” new normal “of the economy. You should guess. “

ADB forecasts South Asia’s economic growth to be 8.8% this year, compared to April’s 9.5% forecast for the subregion. However, the 2022 outlook has improved from 6.6% to 7%. India’s forecast has been downgraded from 11% in 2021 to 10%, and next year’s forecast has improved from the previous 7% to 7.5%.

Recovery pathways within the region remain uneven. Growth forecasts for East Asia this year have been raised from 7.4% in April to 7.6% as global demand surges have spurred exports from the region. East Asia’s growth outlook for 2022 remains unchanged at 5.1%. China’s growth forecast remains 8.1% in 2021 and 5.5% in 2022.

On the other hand, the progress of vaccination in developing Asia is still uneven and lags behind that of developed countries.

With the outlook for Armenia, Azerbaijan, Georgia, Kazakhstan and Uzbekistan improving, this year’s economic growth outlook for the Central Asian economy has been raised from the April forecast of 3.4% to 4.1%. The 2022 outlook for subregions has improved from 4% to 4.2%.

Growth forecasts for Southeast Asia in 2021 and 2022 have been reduced from 4.4% and 5.1% in April to 3.1% and 5%, respectively. The Pacific economy is set to shrink 0.6% this year, compared to the 1.4% growth predicted in April, before expanding 4.8% in 2022.

Inflation in developing Asia is expected to remain modest at 2.2% this year and 2.7% in 2022, according to ADB.

Fiber2Fashion News Desk (DS)



ADB cuts developing Asia 2021 growth outlook to 7.1%

Source link ADB cuts developing Asia 2021 growth outlook to 7.1%

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