Asian Development Outlook

• The Asian Development Outlook report has been released by Asian Development Bank
• The Asian Development Bank (ADB) has downgraded India’s economic growth projection for the 2021-22 fiscal year to 10% from the 11% projected in April 2021.
• The regional growth in 2021 is expected to be 7.2%, which is 0.1% lower than was projected in April.

Key highlights:

• The projection for GDP of Developing Asia 2022 is upgraded from 5.3% to 5.4%.
• East Asia’s 2021 growth forecast is raised from 7.4% to 7.5%, reflecting a strong first quarter. Expansion in the People’s Republic of China is still projected at 8.1% in 2021 and 5.5% in 2022 as favorable domestic and external trends align with April forecasts.
• Expansion in China is still projected at 8.1% in 2021, and 5.5% in 2022.
• Regional inflation is expected to remain benign, the forecast revised up marginally for 2021 from 2.3% to 2.4% but unchanged at 2.7% for 2022.
• In India, GDP will rebound strongly by 11% in Fiscal Year (FY) 2021-22 due to continued economic recovery boosted by increased public investment, vaccine rollout, and a surge in domestic demand.
• India’s economic growth to moderate to 7% in FY 2022-23.
• The economy is expected to have contracted by 8% in FY 2020-21 in line with the government’s second advance estimate.
• ADB’s projections suggest almost three successive years of inflation hovering closer to the RBI’s upper tolerance limit of 6% than the midpoint of the 2%-6% range it has to aim to maintain over the medium term, as per the Monetary Policy Committee’s mandate.
• High levels of inflation do not augur well for economic recovery in the post-pandemic scenario.

Gross Domestic Product is the value of all final goods and services produced in the domestic territory of the country during a financial year.

Developing Asia:

• It includes 46 members of the ADB.
• India is also part of Developing Asia.
• It comprises countries in Central Asia, East Asia, South Asia, Southeast Asia, and the Pacific.

Asian Development Bank:

• ADB was established in the year 1966, with head office at Manila (Philippines).
• The aim of the ADB is social development by reducing poverty in the Asia Pacific with inclusive growth, sustainable growth, and regional integration.
• It has 68 members—of which 49 are from within Asia and the Pacific and 19 outside.
• Japan holds the largest share in ADB with 15.677%, followed by U.S.A (15.567%), China (6.473%), and India (5.812%).
• This bank was modeled on the lines of the world bank.
• India is a founding member.