This is the region's first recession in nearly 6 decades. Excluding high-income newly industrialized economies, regional GDP is expected to contract by 0.5% this year before growing by 7.2% next year. Softening demand and subdued food prices will keep inflation benign. The inflation forecast is revised down from 3.2% to 2.9% for 2020 and maintained at 2.3% for 2021.
The threat of a prolonged COVID-19 pandemic and a return to more stringent containment measures is the main risk to the outlook. While economies in developing Asia remain resilient, continued policy support is needed to underpin recovery.
Physical and mental health is vital to post-pandemic recovery. The report's theme chapter explores wellness, or the pursuit of holistic health and well-being. It examines the state of wellness in Asia and the Pacific and its growing role in the region's economy. It discusses how policy makers can promote wellness by creating healthy living environments, encouraging physical activity and healthy diets, and enhancing workplace wellness.
- Developing Asia's GDP expected to contract by 0.7% in 2020 and grow by 6.8% in 2021.
- Inflation forecast for developing Asia is revised down from 3.2% to 2.9% for 2020 and maintained at 2.3% for 2021.
- As COVID-19 spreads, South Asia is expected to shrink by a steep 6.8% in 2020 and rebound by 7.1% in 2021.