DEVELOPING economies in Asia will likely grow at a slower pace than earlier expected due to prolonged Covid-19 outbreaks and uneven progress in vaccinations, the Asian Development Bank said in a report Wednesday. Sept. 22, 2021.
The regional lender lowered its outlook for economic growth to reflect renewed coronavirus outbreaks as variants spread, prompting fresh pandemic precautions.
The Manila, Philippines-based ADB expects 7.1 percent growth in 2021, falling to 5.4 percent in 2022. The forecast in April was for 7.3 percent growth this year and 5.3 percent in 2022.
Most regional economies will remain below their pre-pandemic levels into 2022, and some of the losses from the crisis will be permanent, ADB economists said.
“Support for businesses and households will continue to be important for the economic recovery,” Joseph Zveglich, the bank’s acting chief economist, said in an online briefing.
The forecast for China’s growth remained at 8.1 percent in 2021, with growth expected to slow to 5.5 percent in 2022. The country where the virus was first reported in 2019 has adopted a “zero tolerance” policy that has kept outbreaks under control and life in much of the country close to normal.
But as is true for much of the region, the country is discouraging travel inside its borders and allowing only minimal international travel.