Manila (UNA-OIC) – Economies across developing Asia will contract this year for the first time in nearly six decades but recovery will resume next year, as the region starts to emerge from the economic devastation caused by COVID-19, according to an updated report released by the Asian Development Bank (ADB) on Tuesday.
The Asian Development Outlook (ADO) 2020 Update forecast a contraction of 0.7 percent on the gross domestic product (GDP) for developing Asia this year, marking its first negative economic growth since the early 1960s.
The report said about three-quarters of the region’s economies are expected to post negative growth in 2020, pointing out that growth will rally to 6.8 percent in 2021, in part because growth will be measured relative to a weak 2020.
“Most economies in the Asia and Pacific region can expect a difficult growth path for the rest of 2020,” ADB Chief Economist Yasuyuki Sawada said, noting that the economic threat posed by the COVID-19 pandemic “remains potent, as extended first waves or recurring outbreaks could prompt further containment measures”.
“Consistent and coordinated steps to address the pandemic, with policy priorities focusing on protecting lives and livelihoods of people who are already most vulnerable, and ensuring the safe return to work and restart of business activities, will continue to be crucial to ensure the region’s eventual recovery is inclusive and sustainable,” he added.