The Asian Development Bank has lowered India’s economic growth forecast for the current financial year to 10 percent on Tuesday, from 11 percent projected in April, due to the adverse impact of the coronavirus pandemic.
India’s GDP growth recovered to 1.6 percent in the last quarter of the fiscal year ending in March 2021, reducing the contraction for the full fiscal year from the 8 percent estimated in April to 7.3 percent. revised, the multilateral funding agency said in Asian Development Outlook. (ADO) Supplement.
“Then a second wave of the pandemic prompted many state governments to impose strict containment measures. Daily new COVID-19 cases peaked at more than 4,00,000 in early May, then fell to just over 40,000 in early July.
“Early indicators show that economic activity is resuming rapidly after containment measures were relaxed. Growth projection for fiscal year 2021 (ending March 2022), lowered from 11 percent in ADO 2021 to 10 percent, it reflects large base effects, “he said.
The ADO was launched in April.
The projection for fiscal year 2022 (ending March 2023), at which time much of India’s population is expected to be vaccinated, rises from 7% to 7.5% as activity normalizes economic, the Manila-based funding agency said.
Regarding China, the ADB supplement said expansion in the People’s Republic of China is still projected at 8.1 percent in 2021 and 5.5 percent in 2022, as favorable internal and external trends align. with April forecasts.
On South Asia, the ADB said that the economic outlook for the subregion is clouded by the new waves of COVID-19 that will affect the subregion from March to June 2021.
The adverse economic impact of these new waves is expected to be limited, with businesses and consumers better able to adapt to the pandemic and containment measures now than a year ago, he said.
“The GDP growth forecast for the subregion in 2021 was lowered from 9.5 percent in ADO 2021 to 8.9 percent, but was updated for 2022, from 6.6 percent to 7 percent,” ADB said. in the supplement.
Recovery is underway in developing countries in Asia, but the growth projection for this year has been revised slightly downward from 7.3% in the 2021 Asian Development Outlook in April to 7.2% after new virus outbreaks in some economies.
The projection (developing Asia) for 2022 rises from 5.3% to 5.4%, he added.
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