Global economy to shrink in 2020: ADB report

Economies across developing Asia will decline this year for the first time in the past six decades, said a report released by the Asian Development Bank (ADB) on Tuesday.

As the COVID-19 pandemic persists, developing Asia is projected to reduce by 0.7% in 2020—the first regional GDP reduction since the early 1960s, according to the Asian Development Outlook (ADO) 2020 Update.

Developing Asia excluding the newly industrialized economies will also contract by 0.5%, the report said, adding growth is forecast to rebound to 6.8% in 2021, but this will still leave GDP next year substantially below expectations before COVID-19. Thus, the regional recovery will be L-shaped or “swoosh-shaped” rather than V-shaped.

Source: VOV5