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- GDP of ‘developing Asia’ set to contract for the first time in nearly six decades - ADB
GDP of ‘developing Asia’ set to contract for the first time in nearly six decades - ADB
CNBC reports that Asian Development Bank said that developing Asia, which includes countries like China, India, Indonesia and Singapore, will contract this year for the first time in about six decades as the coronavirus pandemic continues to hammer economies worldwide.
In its updated outlook report, ADB said GDP in developing Asia will contract 0.7% this year. The bank also said three-fourths of the region’s economies are set to shrink in 2020, downgrading its GDP forecasts for those countries.
The pandemic slowed domestic consumption, affected external demand and hit exports, Yasuyuki Sawada, ADB’s chief economist, said.
“On top of this, travel bans really undermine free flow of people as well as goods and services trade,” he said.
Growth will likely rebound in 2021 with developing Asia expected to register a 6.8% expansion. India is set to grow 8% for the next calendar year, according to the report.
Bank in its report warned that a prolonged wave of Covid-19 infections could stifle recovery and further disrupt demand and supply while worsening geopolitical tensions, notably among U.S. and China, remain a risk.
Protracted weakness could trigger crises in some economies, the ADB said.
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