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Asian economy to shrink, first time since 1960s, thanks to Covid-19: ADB

In India, where lockdowns have stalled private spending, GDP will shrink by 9% this year, sharply down from June's forecast of -4%

September 15, 2020 17:41 IST

Developing Asia’s coronavirus-battered will shrink for the first time since the early 1960s, with the level of output next year still seen below pre-pandemic projections even as growth recovers, according to the

The region’s will decline by 0.7 per cent in 2020, down from June’s projection of an increase of 0.1 per cent, the Manila-based bank said in a report Tuesday. A contraction this year would be the first since 1962, Yasuyuki Sawada, the ADB’s chief economist, said in a live-streamed briefing.

“The economic threat posed by the Covid-19 pandemic remains potent, as extended first waves or recurring outbreaks could prompt further containment measures,” Sawada said. Downturns across developing Asia are more widespread than previous crises, with three-quarters of economies in the region tipped to shrink this year, he said.

China will buck the trend and is forecast to expand 1.8 per cent this year -- unchanged from June’s projection -- as successful public health measures provide a springboard for growth, according to the ADB.

Growth is forecast to accelerate to 7.7 per cent in 2021, up from a previous forecast of 7.4 per cent.

 

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Asian economy to shrink, first time since 1960s, thanks to Covid-19: ADB

In India, where lockdowns have stalled private spending, GDP will shrink by 9% this year, sharply down from June's forecast of -4%

Developing Asia’s coronavirus-battered will shrink for the first time since the early 1960s, with the level of output next year still seen below pre-pandemic projections even as growth recovers, according to the

The region’s will decline by 0.7 per cent in 2020, down from June’s projection of an increase of 0.1 per cent, the Manila-based bank said in a report Tuesday. A contraction this year would be the first since 1962, Yasuyuki Sawada, the ADB’s chief economist, said in a live-streamed briefing.

“The economic threat posed by the Covid-19 pandemic remains potent, as extended first waves or recurring outbreaks could prompt further containment measures,” Sawada said. Downturns across developing Asia are more widespread than previous crises, with three-quarters of economies in the region tipped to shrink this year, he said.

China will buck the trend and is forecast to expand 1.8 per cent this year -- unchanged from June’s projection -- as successful public health measures provide a springboard for growth, according to the ADB.

Growth is forecast to accelerate to 7.7 per cent in 2021, up from a previous forecast of 7.4 per cent.

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