June 19, 2020 | Investopaper
Asian Development Bank (ADB) has projected that the Asian countries will grow at 0.1 percent this year due to the Covid-19 effect. ADB had in April projected an average economic growth rate of 2.2 percent. However, it has revised its forecast to show the region’s weakest economic growth rate since 1961.
ADB has projected the region’s economic growth to be 6.2 percent in 2021. It estimates that the average economic growth rate of newly industrialized countries, including Hong Kong, China, Korea and Singapore, will be 0.4 percent this year and 6.6 percent next year.
ADB also estimates that COVID-19 could increase debt and lead to economic crisis. It has projected that the China-US trade war could escalate further. In East Asia, the ADB estimates economic growth at 1.3 percent this year. It is the fastest growing economy in Asia. ADB has projected an average economic growth rate of 7.4 percent in East Asia next year. The sector is projected to grow at 2.3 percent this year and 7.3 percent next year, according to the ADB’s April forecast.
The Asian Development Bank has projected an average economic growth rate of 1.1 percent for South Asian countries. Earlier in April, it had projected an average economic growth of 4.1 percent this year. ADB estimates that economic activity in Southeast Asia will decline by 2.7 percent. According to the ADB, economic growth in countries with tourism-dependent economies such as Indonesia, the Philippines and Thailand will be negative.
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