New Delhi: The Asian Development Bank (ADB) said on Thursday that the country’s economy is projected to shrink by four percent in the current financial year. The corona virus epidemic has had a bad impact on the country’s economy. Not only this, ADB predicts that countries that are part of ‘developing Asia’ will be able to ‘grow with great difficulty’ in 2020.
This multilateral financial organization said in its report Asian Development Scenario that measures adopted to prevent the infection of corona virus are likely to damage economic activity and weaken export demand. ‘Developing Asia’ refers to a group of more than 40 member countries of the ADB.
The report states that ‘developing Asia’ is expected to grow at the rate of 0.4 per cent in the current year and 6.6 per cent in 2021, excluding new industrial economies such as Hong Kong, Republic of Korea, Singapore and Taipei. Covid-19 has badly affected South Asia.
It is projected to shrink by three percent in the year 2020. Whereas in April, the sector was forecast to contract 4.1 percent. The ADB has slashed South Asia growth forecast for 2021 from 6 percent to 4.9 percent. “The Indian economy is projected to contract four percent in the current fiscal year ending March 31, 2021,” according to the report.
