World Bank cuts GDP forecast for East Asia and Pacific amid COVID-19 concerns

July 15 (Reuters) – Growth in East Asia and the Pacific this year will likely be slower than previously thought, the World Bank said on Thursday, as many countries in the region grapple with peaks in COVID-19 cases, new variants and vaccine supply constraints.

East Asia and Pacific region, excluding China, is expected to grow 4% this year, said World Bank President David Malpass, down from 4 forecast. , 4% in March, of countries like Myanmar, torn by conflict, facing a deeper-than-expected recession. .

Including China, which the global lender says is likely to grow 8.5% in 2021, the region is set to expand 7.7% this year, faster than a 7.4% projection made in March. Malpass said at a streaming press conference.

The speed at which countries could deploy vaccines remains a risk to the outlook, with many countries in the region unlikely to be able to fully immunize their populations until 2024, Malpass said.

“The immediate priority for developing countries is widespread access to COVID-19 vaccines that match their deployment schedules,” said Malpass.

The World Bank chief expressed concern that developing countries are falling behind in what has become a two-speed recovery, with advanced economies rebounding stronger as more of their population is fully vaccinated.

“This is why we are primarily focusing on expanding the reach of vaccines,” said Malpass, who announced earlier this month that the bank was raising funding for vaccine procurement and deployment. COVID-19 at $ 20 billion from its previous target of $ 12 billion. .

Malpass once again urged advanced economies to forgo excess doses of COVID-19 vaccines for developing countries facing greater needs.

Unlike countries like Britain and Germany which are preparing to remove most of the remaining restrictions, many locals are reimposing targeted lockdowns to stop an increase in cases and control the spread of more contagious variants.

The worsening COVID-19 crisis in Myanmar, which has been in turmoil since its military seized power in a February 1 coup, could push its economy into a “deeper contraction” this year, said Malpass. The World Bank predicts a 10% collapse of the Burmese economy in March.

Reporting by Karen Lema and Neil Jerome Morales Editing by Ed Davies

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