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ADB Cuts Thailand GDP Forecast by 1/3; Downgrades Asian Growth

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The Asian Development Bank said Asia’s economic growth this year will be slightly lower than previously projected, citing the resurgence of Covid-19 infections.

The ADB said recovery is underway in the bank’s 46 members, including China and India, but growth was revised down to 7.2 percent, from 7.3 percent projected in its Asian Development Outlook report released in April.

ADB chief economist Yasuyuki Sawada said Asia and the Pacific’s recovery from the Covid-19 pandemic continues, although the path remains precarious amid renewed outbreaks, new virus variants and an uneven vaccine rollout.

In Southeast Asia, the ADB revised 2021 growth forecasts to 4.1 percent from 4.5 percent for Indonesia; 2.0 percent from 3.0 percent for Thailand; 5.5 percent from 6.0 percent for Malaysia; and 5.8 percent from 6.7 percent for Vietnam.

For 2022, the ADB maintained its growth forecasts for most Southeast Asian economies: 5.0 percent for Indonesia, 5.7 percent for Malaysia, 5.5 percent for the Philippines, 4.1 percent for Singapore, and 7.0 percent for Vietnam. But it raised the growth projection for Thailand to 4.9 percent for next year from 4.5 percent.