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Asian Development Outlook 2021

Posted on September 23, 2021 by admin1  30

In News : 

  • Recently, the Asian Development Bank (ADB) lowered its 2021 economic growth outlook for developing Asia, amid continuing concerns over the coronavirus disease (COVID-19) pandemic.

Asian Development Outlook (ADO)

  • It is a series of annual economic reports on the Developing Member Countries (DMCs) of the Asian Development Bank (ADB).
  • It analyzes economic and development issues in developing countries in Asia that includes forecasting the inflation and gross domestic product growth rates of countries throughout the region. 

Major Points 

  • Developing Asia: ADB forecasts growth of 7.1% that compares with a projection of 7.3% in April 2021.
    • The growth outlook for 2022 is raised to 5.4% from 5.3%. 

  • India: The Asian Development Bank has cut its forecast for India’s GDP growth in 2021-22 to 10%, from 11% projected earlier, with downside risks dominating the economic outlook. 
  • The ADB also sees rising input costs fuelling inflation to a faster 5.5% pace than the 5.2% previously estimated.
  • Factors responsible:  
    • New COVID-19 variants, renewed local outbreaks, the reinstatement of various levels of restrictions and lockdowns, and slow and uneven vaccine rollouts are weighing down the region’s prospects.
    • Rising global oil prices and higher duties on gasoline and diesel fuel, along with double-digit consumer price inflation for pulses and vegetable oil, the deficient monsoon could augur further inflationary pressure.
  • Suggestions: 
    • Policy measures should not only focus on containment and vaccination but also on continuing support to firms and households and reorienting sectors in the economy to adapt to a ‘new normal’ once the pandemic subsides to kickstart the recovery.”
  • Sustainable food production and agricultural systems that are resilient to climate change will be crucial for developing Asia. 
    • To transform agriculture in the region, its economies must tackle challenges from changing consumer demand, changing demographics, and a changing and more fragile environment

Asian Development Bank (ADB)

  •  It is a regional development bank established on 19th December 1966. The ADB was modelled closely on the World Bank.
  • Headquarters: Manila, Philippines.
  • Members: 68 members, 49 from within Asia.
    • Japan holds the largest proportion of shares in ADB followed by the USA, because Japan is one of the largest shareholders of the bank, the president has always been Japanese.
  • ADB is an official United Nations Observer.
  • Aim: To promote social and economic development in Asia.
  • It is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.

Source: TH

 
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