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UPDATE 1-Pandemic to nearly wipe out growth in developing Asia in 2020 -ADB

Published 06/18/2020, 12:08 PM
Updated 06/18/2020, 12:10 PM
© Reuters.

* Developing Asia may post slowest growth in six decades in
2020
ADB sticks by 6.2% growth forecast in region in 2021
* China's 2020 growth seen at 1.8% vs earlier 2.2% forecast

(Adds detail, table)
By Karen Lema
MANILA, June 18 (Reuters) - Developing Asia will likely
clock up its weakest growth in nearly six decades this year, the
Asian Development Bank (ADB) said on Thursday, as measures to
contain the contagious novel coronavirus hammer economic
activity.
Developing Asia, a group of 45 countries in the Asia-Pacific
region, is expected to post growth of just 0.1% in 2020, the ADB
said in a supplement to its Asian Development Outlook report
issued in April, the slowest pace since 1961, before growing
6.2% next year.
The updated forecasts show more damage to economies in
developing Asia than estimates it released it April, which
predicted 2.2% growth for the region in 2020. "Economies in Asia and the Pacific will continue to feel the
blow of the COVID-19 pandemic this year even as lockdowns are
slowly eased and select economic activities restart in a ‘new
normal' scenario," ADB Chief Economist Yasuyuki Sawada said in a
statement.
"While we see a higher growth outlook for the region in 2021,
this is mainly due to weak numbers this year, and this will not
be a V-shaped recovery," Sawada said, as he underlined the need
for governments to undertake measures to cushion the economic
blow of the pandemic and prevent further waves of infections.
ADB's outlook for China this year also turned grimmer. It
now expects growth in the world's second-largest economy to slow
to 1.8% from an earlier forecast of 2.3%, with renewed
escalation in U.S.-China trade tensions also posing a downside
risk.
Citing depressed demand and lower oil prices, the ADB said
inflation for developing Asia will ease to 2.9% for 2020, down
from its 3.2% forecast in April, and slow further to 2.4% in
2021.


GDP GROWTH
2019 2020 2020 2020 2021 2021
DEC APRIL JUNE APRIL JUNE
Central Asia 4.9 4.5 2.8 -0.5 4.2 4.2
East Asia 5.4 5.2 2.0 1.3 6.5 6.8
China 6.1 5.8 2.3 1.8 7.3 7.4

South Asia 4.3 6.1 4.1 -3.0 6.0 4.9
India 4.2 6.5 4.0 -4.0 6.2 5.0

SEast Asia 4.3 4.7 1.0 -2.7 4.7 5.2
Indonesia 5.0 5.2 2.5 -1.0 5.0 5.3
Malaysia 4.3 4.7 0.5 -4.0 5.5 6.5
Myanmar 6.8 n/a 4.2 1.8 6.8 6.0
Philippines 6.0 6.2 2.0 -3.8 6.5 6.5
Singapore 0.7 1.2 0.2 -6.0 2.0 3.2
Thailand 2.4 3.0 -4.8 -6.5 2.5 3.5
Vietnam 7.0 6.8 4.8 4.1 6.8 6.8

The Pacific 3.7 2.5 -0.3 -4.3 2.7 1.6
Developing 5.1 5.2 2.2 0.1 6.2 6.2
Asia

INFLATION
2019 2020 2020 2020 2021 2021
DEC APRIL JUNE APRIL JUNE
Central Asia 7.5 7.3 7.6 8.0 6.3 6.6
East Asia 2.6 2.7 3.2 2.9 1.8 1.8
China 2.9 3.0 3.6 3.3 1.9 1.9

South Asia 5.0 4.8 4.1 4.0 4.4 4.5
India 4.8 3.8 3.0 3.0 3.8 4.0

SEast Asia 2.1 2.6 1.9 1.0 2.2 2.3
Indonesia 2.8 3.3 3.0 2.0 2.8 2.8
Malaysia 0.7 2.0 1.0 -1.5 1.3 2.5
Myanmar 8.6 n/a 7.5 6.0 7.5 6.0
Philippines 2.5 3.0 2.2 2.2 2.4 2.4
Singapore 0.6 0.9 0.7 -0.2 1.3 0.8
Thailand 0.7 1 -0.9 -1.3 0.4 0.7
Vietnam 2.8 3.5 3.3 3.0 3.5 3.5

The Pacific 3.0 3.3 2.7 2.9 3.8 3.8
Developing 2.9 3.1 3.2 2.9 2.3 2.4
Asia



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