Asia Development Bank with subdued outlook for Southeast Asia’s Covid-19 recovery
Southeast Asia’s economies are on a much slower recovery path from the Covid-19 crisis than previously thought, according to a new assessment by the Asian Development Bank (ADB) released on September 22.
The bank lowered its GDP growth forecast for the region to 3.1 per cent for 2021 from its previous forecast of 4.4 per cent, downgrading growth projections for all Southeast Asian economies except Singapore and the Philippines.
The GDP forecast for the following year 2022 is a bit better at five per cent.
The development bank attributed the downbeat outlook to slow vaccination rates, a shortage of vaccines, surging infections and crippling lockdowns.
Containment measures pose risk for recovery
“This subregion’s recovery continues to be curtailed by recurring spikes of Covid-19 cases, resulting in the reimposition of stringent containment measures in some economies,” the bank said in an update to its Asian Development Outlook 2021.
Major Southeast Asian economies, including Indonesia, Thailand, Malaysia and Vietnam, reported a sharp rise in daily Covid-19 infections and deaths in recent months. The spike in cases and deaths was attributed to the highly infectious delta variant. The situation has been easing somehow only recently.
Southeast Asia plays a major role in the global manufacturing supply chain. Lockdowns and social-distancing measures in the region have prolonged a global shortage of semiconductors and constrained the supplies of goods such as coffee, clothing and footwear.
“Long-term damaging consequences” if vaccinations isn’t properly managed
The ABD said that entire developing Asia is expected to grow by 7.1 per cent this year, lower than its previous forecast of 7.3 per cent. But it slightly upgraded its 2022 growth forecast for the region to 5.4 per cent from 5.3 per cent.
However, the bank warned that delayed vaccine rollouts and the emergence of new variants were among the biggest risks to the outlook and could have “long-term damaging consequences.”
“Income losses caused by the pandemic in particular threaten to leave lasting scars and have a multidimensional effect on regional economies,” the ADB said.
Southeast Asia’s economies are on a much slower recovery path from the Covid-19 crisis than previously thought, according to a new assessment by the Asian Development Bank (ADB) released on September 22. The bank lowered its GDP growth forecast for the region to 3.1 per cent for 2021 from its previous forecast of 4.4 per cent, downgrading growth projections for all Southeast Asian economies except Singapore and the Philippines. The GDP forecast for the following year 2022 is a bit better at five per cent. The development bank attributed the downbeat outlook to slow vaccination rates, a shortage of vaccines,...
Southeast Asia’s economies are on a much slower recovery path from the Covid-19 crisis than previously thought, according to a new assessment by the Asian Development Bank (ADB) released on September 22.
The bank lowered its GDP growth forecast for the region to 3.1 per cent for 2021 from its previous forecast of 4.4 per cent, downgrading growth projections for all Southeast Asian economies except Singapore and the Philippines.
The GDP forecast for the following year 2022 is a bit better at five per cent.
The development bank attributed the downbeat outlook to slow vaccination rates, a shortage of vaccines, surging infections and crippling lockdowns.
Containment measures pose risk for recovery
“This subregion’s recovery continues to be curtailed by recurring spikes of Covid-19 cases, resulting in the reimposition of stringent containment measures in some economies,” the bank said in an update to its Asian Development Outlook 2021.
Major Southeast Asian economies, including Indonesia, Thailand, Malaysia and Vietnam, reported a sharp rise in daily Covid-19 infections and deaths in recent months. The spike in cases and deaths was attributed to the highly infectious delta variant. The situation has been easing somehow only recently.
Southeast Asia plays a major role in the global manufacturing supply chain. Lockdowns and social-distancing measures in the region have prolonged a global shortage of semiconductors and constrained the supplies of goods such as coffee, clothing and footwear.
“Long-term damaging consequences” if vaccinations isn’t properly managed
The ABD said that entire developing Asia is expected to grow by 7.1 per cent this year, lower than its previous forecast of 7.3 per cent. But it slightly upgraded its 2022 growth forecast for the region to 5.4 per cent from 5.3 per cent.
However, the bank warned that delayed vaccine rollouts and the emergence of new variants were among the biggest risks to the outlook and could have “long-term damaging consequences.”
“Income losses caused by the pandemic in particular threaten to leave lasting scars and have a multidimensional effect on regional economies,” the ADB said.
