ADB’s prediction of Asian economy shrinking for the first time since 1960s: Important facts

The prediction of the Manila-based Asian Development Bank says due to pandemic hit the Asian economy is going to shrink for the first time since the early 1960s. It also stated that the period will continue until next year with a downfall in the level of growth as projected before the pandemic.

What is the GDP prediction of ADB?

  • In June the GDP projection showed a significant increase of 0.1% but in 2020, the gross domestic product of the region is going to decline by 0.7%.
  • The GDP will downgrade by 9% this year in India because of the stalled private spending amid the lockdown.

What is the condition of other countries?

  • Philippines and Thailand will also face a GDP shrink.
  • China with its successful public health measures will tackle the problem of the GDP downfall.

What is the solution prescribed by ADB?

To recover the condition, policies should be framed with special attention on the protection of lives and livelihoods, that will ensure a safe resume to work and business operations.

What are the functions of the Asian Development Bank?

ADB is a regional development bank established in 1966. Its headquarter is located in Manila, Philippines. India became a member of ADB since its foundation. It focuses on the alleviation of poverty in Asia and the Pacific through the process of inclusive economic growth, environmentally sustainable growth, and regional integration.