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Developing Asia to contract by 0.4% in 2020, grow by 6.8% in 2021

  • Published at 01:47 pm December 10th, 2020
ADB
Photo showing the Asian Development Bank on the premise gate Collected

Recovery in Southeast Asia continues to lag as virus containment efforts in the larger economies hamper economic activity

Developing Asia is forecasted to undergo overall contraction of 0.4% in 2020, less than the 0.7% envisaged in September.

However, growth is expected to rebound to 6.8% in 2021, although output is likely to remain below what was envisioned before the pandemic.

Asian Development Bank (ADB) released the forecasts in a report, titled “Asian Development Outlook (ADO) 2020 Supplement: Paths Diverge in Recovery from the Pandemic,” on Thursday.

Projected growth in East Asia for 2020 has been updated from 1.3% to 1.6% in the latest report as China and Taipei recovered more quickly than originally expected. Growth of East Asia in 2021 is still forecasted at 7.0%. China's GDP is expected to grow by 2.1% in 2020 and 7.7% in 2021.

For South Asia, the earlier forecast of 6.8% contraction in 2020 has been updated to 6.1% in line with an improved projection for India. Growth of 7.2% is expected for south Asia and 8.0% for India in 2021.

Recovery in Southeast Asia continues to lag as virus containment efforts in the larger economies hamper economic activity. Subregional forecasts are downgraded for 2020 from 3.8% contraction to 4.4%, and for 2021 from 5.5% growth to 5.2%.

Central Asia is still projected to contract by 2.1% in 2020, and the Pacific economies by 6.1%.

Development Asia is the Asian Development Bank's knowledge collaboration platform for sharing development experience and expertise, best practices, and technologies relevant to the Sustainable Development Goals (SDG).