Asian Development Bank raises developing Asia 2022 growth outlook

RTTNews reports that the Asian Development Bank raised its economic growth projections for the next year but signaled divergence in the recovery paths among regional economies.

ADB said developing Asia will expand 5.4 percent next year, instead of 5.3 percent estimated previously. Meanwhile, the outlook for 2021 was downgraded to 7.1 percent from 7.3 percent.

While growth forecasts are raised for East Asia and Central Asia, downward revisions for the rest of the region weighed on the outlook.

"The COVID-19 continues to besiege developing Asia, but vaccines are changing the nature of the pandemic," ADB said. Uneven vaccination coverage is furthering regional divergence.

ADB said growth forecasts have been revised up for those economies that have managed to contain COVID-19. The rapid economic recovery will continue across East Asia. The sub-region was forecast to grow 7.6 percent in 2021 and 5.1 percent in 2022.

Growth in China will remain strong, despite a protracted recovery in household consumption, the lender said. The GDP growth projection remained unchanged at 8.1 percent in 2021 and 5.5 percent in 2022.