Less severe contraction seen for developing Asia

“A prolonged pandemic remains the primary risk, but recent developments on the vaccine front are tempering this, ” said ADB chief economist Yasuyuki Sawada.

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.

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.