ADB raises India GDP forecast by 11%
The Asian Development Bank recently released its Asian Development Outlook, 2021. According to the report, India is to grow at 11%. The Asian Development Bank recently released its Annual outlook. The outlook says that ADB has provided a financial support of 1.5 billion USD to India to fight against COVID-19
Key Findings of the report
- According to ADB, the South Asia is expected to rebound at 9.5% in 2021. The South Asian region had contracted by 6% in 2020. The growth of the region will moderate to 6.6% in 2022.
- The economic growth of Asia is to rebound at 7.3% in 2021. The region faced a contraction of 0.2% in its growth in 2020. In 2022, its growth rate is to be 5.3%.
- The countries such as China, Hong Kong, Singapore and Taipei are expected to meet an increased growth rate of 7.7% in 2021 and 5.6% in 2022. The report classifies these countries as newly industrialised countries.
- The GDP of East Asia is expected to grow at 7.4% in 2021 and at 5.1% in 2022.
Report about China
- The GDP of China is to expand to 8.1% in 2021 and will reach a moderate value of 5.5% in 2022.
- Strong exports of China is to boost the economic activity of the country in 2021.
Reasons of recovery
The progress in production and delivery of COVID-19 vaccines helped Asia in reaching the current state. However, significant new outbreaks might undermine the growth of the region.
The following challenges are faced by the Asian Economies:
- Increasing Geopolitical tensions
- Financial turmoil from tightening financial conditions
- Production bottlenecks
- Long term scarring. This includes learning losses due to school closures
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