An Asian Development Bank report released on Thursday said that developing countries in Asia will grow at its slowest rates in over 60 years due to the widespread impact of the coronavirus pandemic.
The growth rate for the region has been revised down by the ADB from 2.2 per cent to 0.1 per cent.
“This will be the lowest regional growth outcome since 1961. Contraction is now expected in all subregions except in East Asia, where the People’s Republic of China (PRC) and Taipei, China are still projected to experience positive growth,” the report said.
South East Asia
In South East Asia, the report said that there has been a broad decline in consumption, investment and trade due to restrictive lockdown measures imposed by the governments.
This mirrors reports from government agencies including those in Thailand with the Bank of Thailand saying that the economy will likely contract 5 per cent in 2020.
Analysts from major banks and think tanks say that a contraction of 5 per cent is a best-case scenario.
The ADB also lowered its prediction for Thailand from a 4.8 per cent contraction predicted in April to a more likely 6.5 per cent contraction.
“Private investment was hampered by weaker domestic consumption and business sentiment under the COVID-19 pandemic,” said the ADB report. “On the supply side, merchandise exports grew moderately, aided by high gold prices, but were constrained as declines hit exports of rice, rubber, vehicles, and chemical and petrochemical products.”
“Service exports plunged in tandem with a significant fall in tourism receipts.”
