Asian Development Bank paints gloomy picture of developing Asian economies

Manila, September 15

Developing economies in Asia will contract in 2020, the first such downturn in nearly 60 years, the Asian Development Bank said Tuesday in an update to its forecasts.

The update of the ADB’s outlook estimates the regional economy will contract 0.7% this year, recovering to 6.8% growth in 2021.

Conditions could deteriorate further, however, if the Covid pandemic worsens significantly, the regional lender said.

Asia’s status as a production base for many medical products, digital devices and optical equipment helped to cushion the blow to trade from the pandemic downturn, the report noted.

Nonetheless, the downturn is the worst since the early 1960s, the report said.

“This has set back efforts to life hundreds of millions of people in our region out of poverty,” said the ADB’s chief economist, Yasuyuki Sawada. — AP

Indian economy to shrink 9% in FY21

• Indian economy will shrink by 9% this fiscal, the ADB predicted saying growth outlook remains highly vulnerable to either a prolonged outbreak of the pandemic or a resurgence of cases
• This will be the first time in four decades that the Indian economic growth will contract

Worst downturn in nearly 60 years

• The update of the ADB’s outlook estimates the regional economy will shrink by 0.7%
• The bank said developing economies in Asia will contract in 2020, the first such downturn in nearly 60 years

• Conditions could deteriorate further, however, if the Covid pandemic worsens significantly, the regional lender said

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