India’s economy is expected to grow 11% in the current fiscal year amid a “strong” vaccine campaign, the Asian Development Bank (AfDB) said on Wednesday, while warning that the recent spike in cases of Covid could put the country’s economic recovery at “risk”.
“The Indian economy is expected to grow by 11% in fiscal 2021, which ends March 31, 2022, amid a strong vaccine campaign,” AfDB said in its flagship Asian Development Outlook (ADO) 2021 released on Wednesday.
However, the Asian Development Bank (AfDB) has warned that the surge in COVID-19 cases could jeopardize the country’s economic recovery.
For FY2022, India’s GDP is expected to grow by 7 percent, he added.
In addition, he said South Asia’s gross domestic product (GDP) is expected to rebound to 9.5% this year, after contracting 6% in 2020, before moderating to 6.6% in 2020. next year (2022), he said.
The AfDB said economic growth in developing Asia is expected to rebound to 7.3% this year, supported by a healthy global recovery and rapid progress on COVID-19 vaccines. The expected resurgence follows a 0.2% contraction last year.
“The region’s growth is expected to moderate to 5.3% in 2022. Excluding the newly industrialized economies of Hong Kong, China, the Republic of Korea, Singapore and Taipei, China, activity Developing Asia’s economy is expected to grow 7.7%. year and 5.6% in 2022 ”, indicates the report.
The report predicts that most developing Asian economies will experience healthy growth this year and into 2022.
Developing Asia has 46 ADB list members based on geographic group. These include the newly industrialized economies, the countries of Central Asia, East Asia, South Asia, South East Asia and the Pacific.
The report says that in China, strong exports and a gradual recovery in household consumption will boost economic activity this year.
China’s gross domestic product (GDP) is expected to grow by 8.1% in 2021 and 5.5% in 2022. East Asia’s GDP is expected to grow by 7.4% in 2021 and by 5 , 1% in 2022, he said.
The report says rising exports are boosting some developing Asian economies amid strengthening global economic activity, including a rebound in manufacturing.
Advances in the production and delivery of COVID-19 vaccines have contributed to this momentum, but the pandemic remains the region’s greatest risk, as potential delays in vaccine deployment or major new outbreaks could jeopardize growth.
Growing geopolitical tensions, production bottlenecks, financial turmoil due to tightening financial conditions and long-term scars such as learning losses due to school closures are among other risk factors. , according to the report.
Growth is gaining momentum across developing Asia, but further outbreaks of COVID-19 pose a threat to the recovery, AfDB chief economist Yasuyuki Sawada said.
“The region’s economies are on divergent paths. Their trajectories are shaped by the scale of national epidemics, the pace of their vaccine deployments, and how much they are benefiting from the global recovery,” Sawada said.