Asian Development Bank Outlook Report

In News 

• Recently, Asian Development Outlook (ADO) 2022 was released .

Major Findings

• Asian Development Bank projected a seven per cent collective growth for South Asian economies in 2022 with the sub-region’s largest economy India growing by 7.5 per cent in the current fiscal year before picking up to eight per cent the next year.
  • The ADB has factored in the Russia-Ukraine confict’s implications for India, which would be largely indirect through higher oil prices, and has assumed that the severity of the COVID-19 pandemic would subside with a rise in vaccination rates. 
• Developing Asia’s economies are predicted to grow by 5.2 per cent this year and 5.3 per cent in 2023 due to a robust recovery in domestic demand and continued expansion in exports.
  • Developing Asia comprises 46 member countries of ADB by geographic group: the Caucasus and Central Asia, East Asia, South Asia, Southeast Asia and the Pacific.
  • South Asia comprises Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.

• Challenges
  • Inflation will accelerate and the current account deficit will widen due to the surge in global oil prices.
  • Mobilising resources was particularly challenging for the State governments and improving their fiscal resources was critical for India’s sustained and inclusive growth.

• Suggestions 
  • Governments in the region will need to remain vigilant and prepared to take steps to counter these risks. 
  • Monetary authorities should also continue to monitor their inflation situation closely and not fall behind the curve.
  • The region’s economies urgently need to mobilise fiscal resources to restore the health of public finances and build a more inclusive and sustainable future.
  •  Strengthening personal income and property taxes can raise additional revenue and make tax systems more progressive.
  •  Significant opportunities exist to expand the use of tax and other fiscal instruments to tackle environmental and health priorities while raising revenue.

Source:TH