World Bank slashed economic growth forecast for developing East Asian countries due to impact of delta variant of coronavirus
Excluding the surprisingly strong growth in China, developing countries in East Asia are expected to grow 2.5% this year, down from a forecast of 4.4% in April, the based lender said. in Washington in a report. He said China, the region’s largest economy, is expected to grow 8.5 percent.
“The region is hit hard by the COVID-19 Delta variant as many advanced economies are on the path to economic recovery,” the World Bank said. “COVID-19 will reduce growth and increase inequality unless scars are addressed and opportunities seized. “
To avoid long-term economic damage, the bank said governments must support productive enterprises and encourage new competitors, promote technological development and reduce trade barriers.
Countries also need to improve “social protection” by expanding the poor’s access to “needs-based assistance,” the bank said.