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THE Asian Development Bank (ADB) raised its 2022 economic growth estimates for developing Asia but trimmed them for this year on lingering concerns over the Covid-19 pandemic.

This year it expects economic growth to be lower at 7.1% from its April projection of 7.3%. For 2022, it expects 5.4% from 5.3%. Inflation is projected at 2.2% this year and 2.7% in 2022.

It says while growth forecasts are raised for East Asia and Central Asia, downward revisions for the rest of the region weigh on the outlook.

The recovery in global demand for exports from developing Asia, supported by robust growth in advanced economies, will continue to benefit the region’s export-oriented economies.

However, the recovery momentum has weakened in economies battling renewed waves of Covid-19, according to ADB in its September issue of the Asian Development outlook update.

It cites additional downside risks as possible geopolitical tensions, global supply chain disruptions, and financial-market turbulence as US monetary policy normalises.However, it believes policy measures should not only focus on containment and vaccination. They should also continue to support firms and households and reorientate sectors in the economy to adapt to a “new normal” once the pandemic subsides to kickstart the economy.

It says as economies recover from the pandemic, medium-term risks will return. Among them are natural disasters and extreme weather events linked to climate change as well as the fallout from rising food insecurity. However, sustainable food production and agricultural systems that are resilient to climate change will be crucial for developing Asia.