MANILA: The Covid-19 pandemic will cause economic output in “developing Asia” to shrink this year, the first time in nearly six decades, before it bounces back next year, says the Asian Development Development Bank (ADB).
“Developing Asia”, which groups 45 countries in Asia-Pacific, is expected to contract 0.7%, the ADB said, forecasting the first negative quarterly figure since 1962.
The ADB’s previous forecast in June had reckoned on a 0.1% growth.
For 2021, the region is forecast to recover and grow 6.8%, still below pre-Covid-19 predictions, the ADB said in an update of its Asian Development Outlook report.
The updated forecasts show that the damage caused by the pandemic was greater than previously thought, with about three-quarters of the region’s economies forecast to slump this year. — Reuters
Did you find this article insightful?