Illustrative photo (Source: VNA)Hanoi (VNA) - Economic activity in developingAsian 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, accordingto a report released by the Asian Development Bank (ADB).
The outlook for 2021 remains unchanged, with the region’sgrowth projected to pick up to 6.8 percent as it moves toward recovery from theeffects of the COVID-19 pandemic
Most of developing Asia’s subregions are forecast tocontract this year, except for East Asia with an upgraded growth forecast of 1.6 percent onthe 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 asCOVID-19 outbreaks and containment measures continue, particularly inIndonesia, Malaysia, and the Philippines. The subregion’s growth forecast for2020 is revised down to -4.4 percent from -3.8 percent in September. Thesubregion’s outlook for 2021 is also downgraded, with Southeast Asia nowexpected to grow 5.2 percent next year compared to the 5.5 percent growthforecast in September.
ADB Chief Economist Yasuyuki Sawada said: “A prolongedpandemic remains the primary risk, but recent developments on the vaccine frontare tempering this.”/.
