- Developing Asia’s coronavirus-battered economy will shrink for the first time since the early 1960s, with the level of output next year still seen below pre-pandemic projections even as growth recovers, according to the Asian Development Bank.
- The region’s gross domestic product (GDP) will decline by 0.7 per cent in 2020, down from June’s projection of an increase of 0.1 per cent.
- A contraction this year would be the first since 1962.
- China will buck the trend and is forecast to expand 1.8 per cent this year — unchanged from June’s projection — as successful public health measures provide a springboard for growth.
- In India, GDP will shrink by 9 per cent this year, sharply down from June’s forecast of -4 per cent.
- Growth in Developing Asia — a region that excludes advanced nations like Japan, Australia and New Zealand — will rebound to 6.8 per cent in 2021, in part because it will be measured against a weak 2020.
Asian Development Bank (ADB)
- Founded in 1966, the Asian Development Bank’s (ADB) headquarters are in Manila, Philippines.
- The Asian Development Bank’s primary mission is to foster growth and cooperation among countries in the Asia-Pacific Region.
- It has been responsible for a number of major projects in the region and raises capital through the international bond markets.
- The ADB also relies on member contributions, retained earnings from lending, and the repayment of loans for funding of the organization.
- It was composed of more than 40 regional members, which included countries in South Asia, Southeast Asia, and East Asia.
- The bank’s top borrowers include Indonesia, the People’s Republic of China, India, and Pakistan.
KEY TAKEAWAYS
- The Asian Development Bank’s primary mission is to foster growth and cooperation among countries in the Asia-Pacific Region.
- The majority of the ADB’s members are from the Asia-Pacific region.
- The ADB provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote development.
- The two largest shareholders of the Asian Development Bank are the United States and Japan.
Aim
- The ADB defines itself as a social development organization that is dedicated to
- Reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
- This is carried out through investments –
- in the form of loans, grants and information sharing –
- in infrastructure, health care services, financial and public administration systems,
- helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas.