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ADB Downgrades Economic Growth Of Developing Asia For 2021 To 7.2%

ADB Downgrades Economic Growth Of Developing Asia For 2021 To 7.2%
The resurgence of Covid-19 infections in some countries in Asia prompted the Manila-based Asian Development Bank to bring down its economic growth projections for developing Asia slightly compared to its previous estimates for this year.  
There was an economic recovery underway in "developing Asia", the ADB said referring to the 46 members of the bank which included China and India. The ADB however brought down the growth from its 7.3% projection in its Asian Development Outlook (ADO) report released in April now to 7.2%.
The bank however said that there will be an expansion of 5.4% in the bloc's combined economy in 2022 compared to its previous projection of 5.3%.
"Asia and the Pacific's recovery from the COVID-19 pandemic continues, although the path remains precarious amid renewed outbreaks, new virus variants, and an uneven vaccine rollout," ADB Chief Economist Yasuyuki Sawada said.
The growth forecast for China for this year was maintained at 8.1% and 5.5% for 2022 by the bank in its ADO supplement. It however revised its growth forecast for India for this year to 10% from 11% projected earlier and to 7.5% for next fiscal year compared to its previous forecast of 7.0%.
For the Southeast Asian countries, the ADB also revised its growth forecast for the current year to 4.1% from 4.5% for Indonesia; 2.0% from 3.0% for Thailand; 5.5% from 6.0% for Malaysia; and 5.8% from 6.7% for Vietnam.
Growth projection for Singapore for this year was raised by the ADB to 6.3% from its previous estimate of 6.0%, but retained the growth outlook for the Philippines at 4.5%.
The growth forecast for most Southeast Asian economies was maintained by the ADB for 2022: 5.0% for Indonesia, 5.7% for Malaysia, 5.5% for the Philippines, 4.1% for Singapore, and 7.0% for Vietnam except for Thailand for which the bank raised the growth projection to 4.9% for next year from its earlier projection of 4.5%.
"On top of containment and vaccination measures, phased and strategic rejuvenation of economic activities - for instance, trade, manufacturing, and tourism - will be key to ensure that the recovery is green, inclusive, and resilient," Sawada said.

Christopher J. Mitchell

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