Developing Asia's 2020 contraction to be less severe, ADB says

Southeast Asia remains under pressure, as virus outbreaks and restrictions continue in countries such as Indonesia, Malaysia, and the Philippines, prompting the ADB to downgrade its 2020 and 2021 growth forecasts for the sub-region.

MANILA: Developing Asia is on course to contract this year, but probably less than previously thought as China recovers faster than expected, although the prolonged pandemic remains a risk to the outlook, the Asian Development Bank (ADB) said on Thursday.

Economic output in developing Asia, a group of 45 nations in the Asia-Pacific, is seen to shrink 0.4% this year, the ADB said in a supplement to its Asian Development Outlook report, short of its earlier estimate of a 0.7% decline.