Asia set for up to double-digit growth in 2021 on Covid rebound: ADB

London (Quantum Commodity Intelligence) - Asia's developing economies are set to grow by up to 11% this year amid a surge in activity as Covid restrictions relax, with the average gain excluding newly industrialised economies at 7.7%, according to a report released Wednesday by the Asia Development Bank.

The resurgence follows a contraction of 0.2% in 2020 and follows rising exports across some economies in developing Asia amid strengthening global economic activity, including a rebound in manufacturing.

"Growth is gaining momentum across developing Asia, but renewed COVID-19 outbreaks pose a threat to recovery," said ADB Chief Economist Yasuyuki Sawada.

"Economies in the region are on diverging paths. Their trajectories are shaped by the extent of domestic outbreaks, the pace of their vaccine rollouts, and how much they are benefiting from the global recovery."

Strong exports and a gradual recovery in household consumption will boost economic activity in the People's Republic of China (PRC) this year, said the report.

The country's gross domestic product (GDP) is forecast to expand 8.1% in 2021 and 5.5% in 2022.

East Asia's GDP is expected to grow 7.4% in 2021 and 5.1% in 2022.

India's economy, meanwhile, is expected to grow 11% in the fiscal year 2021, which ends on 31 March 2022, amid a strong vaccine drive.

However, the recent surge in Covid cases may put this recovery at risk.

India's GDP is expected to have expanded 7% in 2020.

This year, South Asia's GDP growth is expected to rebound to 9.5%, following a 6% contraction in 2020, before moderating to 6.6% next year.

Central Asian economies are forecast to grow 3.4% on average this year and 4% next year.

The trade-dependent economies of Southeast Asia will also recover, with the subregion forecast to grow 4.4% this year and 5.1% in 2022 after contracting 4% in 2020, said the report.

However, Pacific economies, still affected by global travel restrictions and a collapse in tourism, will post modest growth this year at 1.4%, before expanding by 3.8% next year.