- It forecast the developing Asian growth to rebound to 6.8% in 2021, but prospects diverge within the region.
ISLAMABAD: The Asian Development Bank (ADB) in its report has said that Pakistan’s economy was recovering particularly in manufacturing and construction sectors supported by the government’s emergency relief package.
The brief report “Asian Development Outlook (ADO) 2020 Supplement: Paths Diverge in Recovery from the Pandemic” released on Thursday said the developing Asia was now forecast to contract by 0.4% in 2020, less than the 0.7% contraction envisaged in the Asian Development Outlook 2020 Update in September.
It forecast the developing Asian growth to rebound to 6.8% in 2021, but prospects diverge within the region.
The earlier South Asia forecast for 6.8% contraction is upgraded to 6.1% in line with an improved projection for India.
Recovery in Southeast Asia continues would lag as COVID-19 virus containment efforts in the larger economies hamper economic activity. Subregional forecasts are downgraded for 2020 from 3.8% contraction to 4.4%, and for 2021 from 5.5% growth to 5.2%.
Depressed demand and low oil prices will keep regional inflation in check at 2.8% in 2020 and 1.9% in 2021.