The ‘Asian Development Bank(ADB)’s ‘Asian Development Outlook (ADO) 2020 Supplement: Paths Diverge in Recovery from the Pandemic’- December 2020, has revised India’s Gross Domestic Product (GDP) FY21 rate upwards to -8%(contract by 8) from -9% projected in Asian Development Outlook 2020 Update in September 2020. The Growth will return in 2021 at 8.0% in India.
The GDP of Developing Asia(46 ADB-Asian Development Bank member economies across Asia and the Pacific) forecasted to contract by 0.4%(-0.4%) from -0.7% projected in September 2020. The growth will rebound to 6.8% in 2021.
Highlights of ADO 2020- December
Growth Projection of Central Asia and Pacific economies Unchanged
The growth forecast for Central Asia is projected to contract by 2.1% in 2020 and Pacific economies to contract by 6.1% as global tourism continues to weaken.
These projections are unchanged from the September 2020 projection.
The growth projection of South Asia is upgraded to -6.1% from -6.8%.
This is in line with the improves projection for India
Growth will rebound to 7.2% in 2021.
Other Growth Projections
East Asia- Upgraded from 1.3% to 1.6% for 2020; Growth in 2021 at 7.0%
Southeast Asia– There is a delay in recovery of Southeast Asia due to the lag in the virus containment efforts.
Subregional– downgraded from 3.8% contraction to 4.4% for 2020; Growth in 2021 downgraded from 5.5% growth to 5.2%.
Regional inflation– The depressed demand and low oil prices will keep regional inflation at 2.8% in 2020 and 1.9% in 2021.
Recent Related News:
In accordance with the official data released by the National Statistics Office (NSO), India’s gross domestic product (GDP) for the second quarter ended September 30, 2020 (Q2FY21) contracted by 7.5% as compared to the expansion of 4.4% in the corresponding July-September period of 2019-20.
About Asian Development Bank (ADB):
President– Masatsugu Asakawa
Headquarters– Mandaluyong City, Manila, Philippines
Membership– 68 countries (Including India)