ADB Trims Down Growth Forecast for Asia

The Asian Development bank warned on Tuesday that Omicron variant could have “substantial” economic impact across the region, as it trimmed its 2021 and 2022 growth forecast for developing Asia.

The report noted despite robust vaccination rate across the region, “the pandemic will take time to play out”.

The organization forecasted growth of 7.0% in 2021 compared with previous prediction in September of 7.1% and 5.3% in 2022 down from forecast of 5.4%.

The report further noted although the region would rebound strongly despite omicron to bright additional uncertainty.

“Recent developments in Europe show that extensive virus outbreaks can occur even in highly vaccinated countries and force governments to retighten mobility restrictions,” it said.

“As it (Omicron) appears to be significantly more transmissible than earlier variants, its economic impact could be substantial.”