(Yicai Global) Dec. 11 -- China’s economic is recovering more swiftly than expected, according to a report the Asian Development Bank released yesterday that upgrades its projected growth to 2.1 percent this year, 0.3 percentage points higher than its previous forecast, and predicts 7.7 percent economic growth next year.

China's gross domestic product swelled 4.9 percent in the third quarter and 0.7 percent in the first three quarters, the 2020 Asia Development Outlook Supplement said. The country’s manufacturing is rapidly reviving and its service sector, including catering and hotels, is gradually tuning in to the overall upturn.

Developing Asian economies -- the ADB’s 46 developing member countries -- will contract by 0.4 percent this year and rebound next year, with growth reaching 6.8 percent. Projected growth in East Asia will touch 1.6 percent this year with China recuperation. The region’s growth is set to hold to 7 percent.

South Asia’s GDP will shrink by 6.1 percent this year, an upward revision from the 6.8 percent contraction foreseen in September. The region’s growth is also anticipated to rebound to 7.2 percent next year.

The outlook for developing Asia-Pacific economies is also now on the upswing, and those for the area’s two largest economies, China and India, have likewise been revised upward, said Yasuyuki Sawada, chief economist at ADB. The persisting Covid-19 pandemic remains the top risk facing the Asia-Pacific region and the timely provision of safe and effective vaccines for developing economies is thus critical in propping up its revival.

Founded in 1996, the ADB is headquartered in the Philippine capital of Manila. The Asian Development Outlook is the ADB’s annual flagship economic report and forecasts the economic development of the Asia-Pacific region.

Editor: Ben Armour