ADB revises down Asia's growth forecast to 7% in 2021, 5.3% in 2022

ADB noted that activity in the region had picked up with the decline in cases. Supply disruptions had been relatively less of an issue in developing Asia, allowing many economies to take advantage of strengthening regional and global demand and helping keep inflation manageable.

East Asia’s growth forecasts are revised down marginally for both 2021 and 2022, with China now expected to grow slower, by 8 per cent in 2021 and by 5.3 per cent in 2022.

The growth forecast for South Asia is revised down to 8.6 per cent for 2021, while the forecast for 2022 is maintained at 7 per cent. India’s projection is lowered to 9.7 per cent for fiscal 2021 and remains unchanged at 7.5 per cent for 2022.

After growth in Southeast Asia decelerated in the third quarter, the sub-regional forecast is revised down from 3.1 per cent to 3 per cent for 2021 but revised up to 5.1 per cent for 2022.

Central Asia’s growth prospects are substantially upgraded from 4.1 per cent to 4.7 per cent for 2021 and then from 4.2 per cent to 4.4 per cent for 2022.

The Pacific is still forecast to contract by 0.6 per cent in 2021, then grow by 4.7 per cent in 2022, slightly slower than earlier forecast.

Regional inflation remains manageable, with the inflation forecast revised down a notch to 2.1 per cent for 2021 and unchanged at 2.7 per cent for 2022.

Developing Asia is expected to sustain its strong rebound as envisaged in September. The growth projection for the region in 2021 is revised down very slightly to 7 per cent as forecasts for East, South, and Southeast Asia are downgraded.

The regional growth forecast for 2022 is revised down slightly from 5.4 per cent to 5.3 per cent to reflect recovery in East Asia below earlier expectations.

Regional inflation is expected to remain manageable at 2.1 per cent in 2021 and 2.7 per cent in 2022, allowing for a more accommodative monetary policy and supporting pandemic recovery efforts.

Fibre2Fashion News Desk (DS)