The main risk to the outlook remains a resurgence in cases of coronavirus disease (COVID-19), especially given the emergence of a fast-spreading variant. Other risks include a protracted correction in the housing market that could induce an unexpectedly sharp slowdown in the People’s Republic of China, rising inflation, and persistent global supply disruption.
Highlights
- The economic growth forecasts for developing Asia are downgraded slightly to 7.0% in 2021 and 5.3% in 2022, and the recent emergence of a highly mutated virus variant and a rise in infections globally indicate that the pandemic is far from over.
- East Asia’s growth…