Asian Development Outlook 2021

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    In News : 

    • Recently, the Asian Development Bank (ADB) lowered its 2021 economic growth outlook for developing Asia, amid continuing concerns over the coronavirus disease (COVID-19) pandemic.

    Asian Development Outlook (ADO)

    • It is a series of annual economic reports on the Developing Member Countries (DMCs) of the Asian Development Bank (ADB).
    • It analyzes economic and development issues in developing countries in Asia that includes forecasting the inflation and gross domestic product growth rates of countries throughout the region. 

    Major Points 

    • Developing Asia: ADB forecasts growth of 7.1% that compares with a projection of 7.3% in April 2021.
      • The growth outlook for 2022 is raised to 5.4% from 5.3%. 

    • India: The Asian Development Bank has cut its forecast for India’s GDP growth in 2021-22 to 10%, from 11% projected earlier, with downside risks dominating the economic outlook. 
    • The ADB also sees rising input costs fuelling inflation to a faster 5.5% pace than the 5.2% previously estimated.
    • Factors responsible:  
      • New COVID-19 variants, renewed local outbreaks, the reinstatement of various levels of restrictions and lockdowns, and slow and uneven vaccine rollouts are weighing down the region’s prospects.
      • Rising global oil prices and higher duties on gasoline and diesel fuel, along with double-digit consumer price inflation for pulses and vegetable oil, the deficient monsoon could augur further inflationary pressure.
    • Suggestions: 
      • Policy measures should not only focus on containment and vaccination but also on continuing support to firms and households and reorienting sectors in the economy to adapt to a ‘new normal’ once the pandemic subsides to kickstart the recovery.”
    • Sustainable food production and agricultural systems that are resilient to climate change will be crucial for developing Asia. 
      • To transform agriculture in the region, its economies must tackle challenges from changing consumer demand, changing demographics, and a changing and more fragile environment

    Asian Development Bank (ADB)

    •  It is a regional development bank established on 19th December 1966. The ADB was modelled closely on the World Bank.
    • Headquarters: Manila, Philippines.
    • Members: 68 members, 49 from within Asia.
      • Japan holds the largest proportion of shares in ADB followed by the USA, because Japan is one of the largest shareholders of the bank, the president has always been Japanese.
    • ADB is an official United Nations Observer.
    • Aim: To promote social and economic development in Asia.
    • It is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.

    Source: TH