Southeast Asian economics are going to recover at a slower rate because of the Covid 19 situation. This was not a big surprise because of the fact that the most natural case out of the scenario was going to be bound to be this.
Asian economics are going to recover at a very slow rate. The Covid 19 situation is recurring, and as much problem as that is creating in the health sector, it is also causing problems in the economy department. We have seen the World’s economy fall apart because of this. Now it is time to recover.
Slow and steady as it goes, they are bound to win the race, and as long as it is not going backward, all is good. Now, if we are going to talk statistics, then the bank lowered the growth forecast to 3.1% for 2021. The previous forecast that was given by them was around 4.4%.
In 2022, ADB had given the statement that they are expecting Southeast Asia to grow by 5%. This is also very similar to the previous one or maybe slightly lower than its previous forecast of 5%.
“This sub region’s recovery continues to need to be more careful, and there is only the need to be curtailed by recurring spikes of COVID-19 cases, this will be resulting in the re-imposition of stringent containment measures that had previously been seen in some economies,” the bank had said in an update that they made public.
Now the Countries that are bring affected by this are some of the major countries that are known well for their economy. There are few countries like Indonesia, Thailand, Vietnam, and Malaysia that are getting a high rise of cases of coronavirus, and the infection rate is going up too compared to the daily rate.
Southeast Asian economics are playing an important role in the chain of global supply so in case of an increased spread of the disease there is going to be lockdowns and social distancing which can hinder the progress of the economy. It will not halt, but it will slow down.