(Eagle News) — Developing Asia’s overall economic contraction in 2020 is forecast to be less severe than initially expected, although recovery in Southeast Asia continues to lag, the Asian Development Bank said on Thursday, December 10.
According to the ADB’s Asian Development Outlook 2020 Supplement, the forecast 0.4 percent contraction is less than the 0.7 percent predicted in September.
The ADB said projected 2020 growth in East Asia has been upgraded from 1.3 percent to 1.6 percent, with growth in 2021 still forecast at 7 percent.
The earlier South Asia forecast of a 6.8 percent contraction in 2020 has been upgraded to 6.1 percent, with a growth of 7.2% expected in 2021.
In Southeast Asia, though, a contraction of 4.4 percent is now expected in 2020, as opposed to the previously predicted 3.8 percent.
Growth in 2021 is expected at 5.2 percent instead of 5.5 percent.
“Recovery in Southeast Asia continues to lag as virus containment efforts in the larger economies hamper economic activity,” it said.
According to the ADB, Central Asia is still projected to contract by 2.1 percent this year, while the Pacific economies by 6.1 percent.
“Depressed demand and low oil prices will keep regional inflation in check at 2.8 (percent) in 2020 and 1.9 (percent) in 2021,” the ADB said.
