- According to the latest ADB economic report (December 2020) Developing Asia is now forecast to contract by 0.4% in 2020, less than the 0.7% contraction envisaged in the September ADO Update. While growth in 2021 is forecast to rebound to 6.8%.
- But prospects are diverging within the region:
- East Asia’s growth forecast for 2020 is upgraded from 1.3% to 1.6%, reflecting faster-than-expected recovery in the PRC and Taipei,China
- South Asia will contract by 6.1% this year, upgraded from a 6.8% contraction in the ADO Update. India is recovering more rapidly than expected
- Contraction in Southeast Asia has been revised down from 3.8% to 4.4%. Central Asia is still projected to contract by 2.1% this year, and the Pacific economies by 6.1% as global tourism continues to languish.
- Depressed demand and low oil prices will keep inflation in check, at 2.8% in 2020 and 1.9% in 2021