ABD is developing Asian growth forecast on Omicron fears | Business and Economics

The Asian Development Bank predicts slower growth with the emergence of a new coronavirus variant for China and India.

The Asian Development Bank (ABD) has cut its forecast for economic growth in developing Asia this year and next due to the emergence of the Omicron coronavirus variant.

In a recent forecast released on Tuesday, the Manila Development Bank predicted that the region’s economy would grow by 7% in 2021 and 5.3% in 2022, 0.1% less than previous estimates.

The bank cited the recovery of COVID-19 cases as the highest risk of recovery in the region as a result of the Omicron variant, and including long-term risks. Slowing down the Chinese housing market, rising inflation and disruptions in the global supply chain.

Among the major economies examined, the DB reduced China’s growth forecast to 8 percent in 2021 and 5.3 percent next year, 0.1 percent and 0.2 percent, respectively, compared to September estimates.

The Bank reduced India’s growth rate for 9.21 per cent to 9.21 per cent from 10 per cent in September, and the 2022 figure for 2022 has remained unchanged.

Growth in Southeast Asia fell to 3.1 percent by 2021, down 0.1 percent, but rose 0.1 percent next year to 5.1 percent.

‘New appearances’

Inflation in the region would be “manageable,” the ABD said, with estimates of price growth expected to change from 0.1 percent to 2.1 percent by 2021 and unchanged at 2.7 percent next year.

“The continued development of Asia in the fight against Covid-19, by continuing to encourage vaccination and more strategic implementation of containment measures, helped increase growth opportunities earlier this year,” said Joseph Zveglich Jr. Jr. Leading economists in ADB.

“However, new developments in the third quarter silenced the growth of gross domestic product and the arrival of Omicron. [corona]variants of the virus are causing renewed uncertainty. Efforts to revitalize them must take these developments into account. ”

In September, the bank cut its growth forecast for Asia to 7.1 per cent from 7.3 per cent in April due to concerns about the Delta variant and the irregular spread of vaccines across the region.