ABD plans to expand Asian growth forecast over Omicron | Business and Economy

The Asia Development Bank has predicted the slow growth of China and India following the recent release of coronavirus.

The Asian Development Bank (ABD) has cut its forecast for Asian economic growth this year and tomorrow due to the appearance of the Omicron coronavirus.

In a recent statement published Tuesday, a development bank from Manila predicted that the region’s growing economy would grow by 7 percent in 2021 and 5.3 percent in 2022, down 0.1 percent compared to previous estimates.

The bank also cited the resumption of COVID-19 cases due to Omicron variability as a major threat to the region’s recovery, with other risks including long-term risk. declining Chinese housing market, rising prices and the disruption of global supply chain.

Among the major economies observed, ABD reduced China’s projected growth rate to 8 percent in 2021 and 5.3 percent next year, down 0.1 percent and 0.2 percent, respectively, from its September forecast.

The bank reduced India’s growth to 9.7 per cent in 2021, compared to 10 per cent in September, and the 2022 per cent growth rate of 7.5 per cent has not changed.

Southeast Asian growth slowed to 3.1 percent in 2021, down 0.1 percent, but rose 0.1 percent to 5.1 percent next year.

‘New explosion’

The decline in regional prices will remain “possible”, the ABD said, with inflation rate below 0.1 percent to 2.1 percent in 2021 and unchanged at 2.7 percent next year.

“Improving Asia ‘s growth in response to COVID-19, through vaccination and access to resources, has helped to boost hopes for early growth this year,” said ADB Chief Economist Joseph Zveglich, Jr.

“However, a new explosion in the third quarter disrupted the growth of household items, as well as the arrival of Omicron. [corona]mutations of the virus cause new uncertainties. Recovery trials should also consider this. ”

In September, the bank reduced its expected growth rate in Asia to 7.1 percent, down from 7.3 percent in April, amid concerns over the Delta vaccine variation and the spread of the vaccine throughout the region.