According to the AfDB, the economic outlook for developing Asia has deteriorated in 2020. More worrying: the Covid-19 pandemic continues to disrupt global economic activity and GDP growth forecasts have had to be revised downwards . The region is now expected to contract by 0.7% in 2020, the first regional recession in nearly 6 decades.
Regional GDP is then expected to grow by 6.8% in 2021, but it will nonetheless remain lower than forecast ahead of Covid-19. Slowing demand and moderating food prices will keep inflation moderate. The forecast for headline inflation is revised downward from 3.2% to 2.9% for 2020 and maintained at 2.3% for 2021.
Threat of a protracted pandemic
The threat of a prolonged Covid-19 pandemic is the main risk to the economic outlook according to the AfDB. A return to stricter containment measures could trigger financial turbulence. But Asia remains resistant.
Note: welfare is an important and growing segment of the Asian economy, which provides 11% of regional production. In addition, Asia has a wealth of wellness traditions which are valuable assets for improving development and public health. Government interventions such as building recreation centers in poor neighborhoods can promote the well-being of all Asians.
Download here the AfDB report.
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