ADB sees economic recovery in Pakistan

• Pakistan economy improving specifically in construction and manufacturing sector, says ADB outlook report
• Its predictions of growth for Central Asia and the Pacific unchanged from September
• No growth projection given for Pakistan

ISLAMABAD: Pakistan’s economy is recovering, said the Asian Development Bank (ADB) on Thursday.

A recent report by the bank forecast the developing Asian growth to rebound to 6.8% in 2021. The report is called Asian Development Outlook 2020 Supplement, Paths Diverge in Recovery from the Pandemic.

It identified manufacturing and construction supported by the government's emergency relief as sectors of recovery in Pakistan.

The report discussed the largest economies of its member states, but did not include a number on Pakistan's growth projection.

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A report in The News said that despite the continuous spread of COVID-19, most economies have continued to relax containment measures after deciding that strict lockdowns are unsustainable for the economy.

The extent of containment reflects the state of outbreaks in different economies. It remains relatively stringent in Central, South, and Southeast Asia, where outbreaks have continued in some economies and reemerged in others. But it is less strict in East Asia and the Pacific where outbreaks are under control or absent.

The sub-regional growth for South Asia in 2021 was revised up slightly in the report from 7.1% to 7.2%.

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It predicts that developing Asia will contract by 0.4% in 2020, less than the 0.7% contraction envisaged in the Asian Development Outlook 2020 update from September. Growth will rebound to 6.8% in 2021, but prospects diverge within the region.

The predictions of growth for Central Asia and the Pacific are unchanged from September. Central Asia is still projected to contract by 2.1% this year, and the Pacific economies by 6.1% as global tourism continues to deteriorate.

Depressed demand and low oil prices will keep regional inflation in check at 2.8% in 2020 and 1.9% in 2021, the ADB report said.