Illustrative photo (Source: VNA)
Economic activity in developing Asian economies is forecast to contract by 0.4 percent this year, an improvement from the -0.7 percent gross domestic product (GDP) growth forecast in September, according to a report released by the Asian Development Bank (ADB).
The outlook for 2021 remains unchanged, with the region’s growth projected to pick up to 6.8 percent as it moves toward recovery from the effects of the COVID-19 pandemic
Most of developing Asia’s subregions are forecast to contract this year, except for East Asia with an upgraded growth forecast of 1.6 percent on the back of faster-than-expected recoveries in China and Taiwan (China). China’s growth outlook for 2021 is maintained at 7.7 percent.
Economic growth in Southeast Asia remains under pressure as COVID-19 outbreaks and containment measures continue, particularly in Indonesia, Malaysia, and the Philippines. The subregion’s growth forecast for 2020 is revised down to -4.4 percent from -3.8 percent in September. The subregion’s outlook for 2021 is also downgraded, with Southeast Asia now expected to grow 5.2 percent next year compared to the 5.5 percent growth forecast in September.
ADB Chief Economist Yasuyuki Sawada said: “A prolonged pandemic remains the primary risk, but recent developments on the vaccine front are tempering this”./.