The Asian Development Bank slashed China’s growth forecast to just 2.3% in 2020 on coronavirus pandemic. Though, it expects a strong bounce back of 7.3% in 2021. ADP noted warned that a new round of domestic infection of further global spread could “increasingly dampen investor sentiment, consumer spending, credit sustainability, and overall economic activity”. Revival of trade conflict with the US is another risk.
For Asia, growth in 2020 will slow to 2.2%, down from 2019’s 5.2%, then bounces back to 6.2% in 2021. Excluding Taiwan, Hong Kong, South Korea and Singapore, developing Asia is forecasts to grow 2.4% in 2020, then rebounds to 6.7% in 2021.
