- COVID-19 cases in developing Asia have declined and vaccinations have progressed. But rising global cases and the emergence of a highly-mutated variant suggest that the pandemic is far from over.
- Activity in the region has picked up with the decline in cases. Supply disruptions have been relatively less of an issue in developing Asia, allowing many economies to take advantage of strengthening regional and global demand and helping keep inflation manageable.
- The region’s growth forecasts are broadly unchanged, revised down very slightly to 7.0% in 2021 and 5.3% in 2022. Inflation is projected at 2.1% in 2021 and 2.7% in 2022.
- A resurgence in the COVID-19 pandemic—due to a new virus variant—remains the main risk.