ADB says India’s economy to contract by 9 per cent in FY21

Marco Green
September 15, 2020

In the primary quarter of the present fiscal 12 months, India's GDP contracted by a document 23.9 per cent as lockdowns stalled shopper and enterprise spending.

Sri Lanka's economic growth is expected to pick up to 4.1 percent in 2021 in part due to a low base, while Maldives may grow 10.5 percent.

However, the good news is that it has upped the growth forecast for 2021-22 to 8 per cent from 6.2 per cent predicted earlier as mobility and business activities resume more widely.

The Asian Development Bank says developing Asia will see the first economic contraction in almost six decades in 2020 due to the coronavirus pandemic. This will still leave next year's output below pre-COVID-19 projections, suggesting an L-shaped rather than a V-shaped recovery.

The Asian Development Bank has said that India's economy will contract by 9% in the 2020-'21 financial year, PTI reported. "Despite significant pressure on the health and pandemic management systems, the government has managed the economy well with appropriate economic stimulus and social protection measures, ensuring basic services and commodities for the poor and vulnerable", said ADB Country Director in Bangladesh Manmohan Parkash.

Other draw back dangers come up from geopolitical tensions, together with an escalation of the commerce and expertise battle between the United States and China in addition to monetary vulnerabilities that could possibly be exacerbated by a protracted pandemic.

China, where the virus first emerged late previous year before morphing into a pandemic that has infected more than 29 million people worldwide, was one of the few economies to buck the downward trend in the region. To mitigate the risk, governments in the region have delivered wide-ranging policy responses, including policy support packages-mainly income support-amounting to $3.6 trillion, equivalent to about 15% of regional GDP.

Governments in the region responded with diverse policy measures, it said, citing the "Developing" Asian countries.

"The path and speed of economic recovery in regional economies will depend on many different factors, the most important of which is [the] ability to control and contain the pandemic", the ADB said. It is expected to grow by 1.8 per cent this year and 7.7 per cent in 2021 with successful public health measures providing a platform for growth.

Tourism-dependent island economies, in particular, have seen wrenching economic contractions.

The report revised the Philippines' inflation forecasts to 2.4% in 2020 and 2.6% in 2021, compared with the April projections of 2.2% and 2.4%, respectively, as global oil prices stabilize.

The replace to ADO 2020 incorporates a theme chapter "Wellness in Worrying Times" which discusses the significance of wellness as communities recuperate from Covid-19's toll on bodily and psychological well being.

Other reports by Click Lancashire

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