New Delhi: The Indian economy is expected to grow by 11 percent in the current financial year amid the ‘strong’ vaccine, ADB said on Wednesday, warning that the recent increase in Covid cases could jeopardize the country’s economic recovery.
“The Indian economy is expected to grow by 11 percent in the 2021 financial year, ending 31 March 2022 amid strong vaccine management,” ADB said in its flagship Asian Development Outlook (ADO) 2021 released on Wednesday.
However, the Asian Development Bank (ADB) has warned that the increase in Covid-19 cases could jeopardize the country’s economic recovery. For FY2022, India’s GDP is expected to expand by 7 percent, he added. He further said that South Asia’s gross domestic product (GDP) is expected to recover to 9.5 percent this year, after a contraction of 6 percent in 2020, before reaching 6.6 percent next year (2022). decrease.
ADB said economic growth in developing Asia would bounce back to 7.3 percent this year, backed by a healthy global recovery and early progress with COVID-19 vaccines. The projected revival follows a 0.2 percent contraction last year.
‘Growth in the region is expected to moderate to 5.3 percent in 2022. Excluding the newly industrialized economies in Hong Kong, China; the Republic of Korea; Singapore; and Taipei, China, is expected to grow its economic activity by 7.7 percent and 5.6 percent in 2022 this year, ”the report said.
The report projects that most economies in developing Asia will see healthy growth this year and in 2022. Developing Asia consists of 46 members of the ADB list based on the geographical group. These include new industrialized economies, countries in Central Asia, East Asia, South Asia, Southeast Asia and the Pacific.
The report said strong exports and a gradual recovery in household consumption in China will boost economic activity this year. Chinese gross domestic product (GDP) is expected to expand 8.1 percent in 2021 and 5.5 percent in 2022. GDP in East Asia is expected to grow by 7.4 percent in 2021 and by 5.1 percent in 2022.
The report says that rising exports are boosting some economies in developing Asia amid strengthening global economic activity, including a recovery in manufacturing. Progress in vaccine production and delivery has contributed to this momentum, but the pandemic remains the biggest risk for the region, as potential delays in vaccine rollouts or significant new outbreaks could undermine growth.
Increasing geopolitical tensions, production bottlenecks, financial turmoil due to the aggravated financial conditions and long-term blemishes such as learning losses due to school closures are among other risk factors, the report states. Growth gains momentum in developing Asia, but is renewed COVID-19 outbreaks pose a threat to recovery, said Yasuyuki Sawada, chief economist at ADB.
‘Economies in the region are diverse. ‘Their trajectories are shaped by the extent of domestic outbreaks, the rate of vaccination and how much they benefit from the global recovery,’ Sawada said.
Source: Telangana Today