- World Bank says Delta variant slowing economic growth in East Asia and Pacific
- while China’s economy is projected to expand by 8.5%, the rest of the region is forecast to grow at 2.5%
- the economies of several Pacific island countries and Myanmar have been hit the hardest
- the damage done by the resurgence and persistence of COVID-19 is likely to hurt growth and increase inequality over the longer term
East Asia and the Pacific region’s recovery has been undermined by the spread of the COVID-19 Delta variant, which is likely slowing economic growth and increasing inequality in the region, the World Bank mentioned says an article on Reuters.
Economic activities slow
Economic activity began to slow in the second quarter of 2021, and growth forecasts have been downgraded for most countries in the region, according to the World Bank’s East Asia and Pacific Fall 2021 Economic Update.
East Asia and the Pacific region’s recovery
While China’s economy is projected to expand by 8.5%, the rest of the region is forecast to grow at 2.5%, nearly 2 percentage points less than forecast in April 2021, the World Bank said. “The economic recovery of developing East Asia and Pacific faces a reversal of fortune,” said Manuela Ferro, World Bank Vice President for East Asia and Pacific.
Countries hit hardest:-
The economies of several Pacific island countries and Myanmar have been hit the hardest, with Myanmar expected to contract by 18% while the Pacific island countries as a group are anticipated to shrink 2.9%, the World Bank said.
Decreased growth prospects
Whereas in 2020 the region contained COVID-19 while other regions of the world struggled, the rise in COVID-19 cases in 2021 has decreased growth prospects for 2021. The damage done by the resurgence and persistence of COVID-19 is likely to hurt growth and increase inequality over the longer term, the World Bank said.
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Source: Reuters
