Asian Development Outlook 2021

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.

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

Source: TH