The Asian Development Outlook (ADO) 2020 forecasts a recovery in India's economy in FY2021, with growth of 6.2 per cent, supported by government reform. However, it sits at the midpoint of the National Economic and Development Authority's projection that the local economy could either contract by 0.6 percent or expand by a maximum of 4.3 percent.
"Outcomes can be worse than forecast and growth may not recover as quickly", the bank said.
"Bangladesh economy continued to perform well despite the global economic slowdown".
The ADB representative for Pakistan stated that Pakistan's economy is in better shape than before but emphasised that the country needs to work together to tackle the new challenges posed by COVID-19 - including uncertain short-term growth prospects - and its related socio-economic repercussions.
"Pakistan's strong and decisive policy measures have started to yield positive results in reversing macroeconomic imbalances and narrowing current account deficits", said ADB Country Director for Pakistan Xiaohong Yang.
The forecasts do not reflect the impact of the COVID-19.
Speaking on India, ADB Chief Economist Yasuyuki Sawada said, "The COVID-19 pandemic jeopardizes global growth and India's recovery".
It more than halved its growth estimate for China, where the virus surfaced in December, to 2.3% this year from 5.8% previously, citing dismal economic activity in the first two months of the year.
The Philippine economy is expected to recover next year, to be driven by higher public investment, particularly on infrastructure projects, and a rebound in private consumption, the ADB said.
The pandemic will have devastating impacts on the economies of developing countries in Asia because of the region's deep integration with the global economy through channels of trade, tourism and remittances, the bank said.
It also noted expansionary fiscal and monetary policies will also offset slower domestic demand and disruptions in tourism, trade and manufacturing.
Exports are projected to grow by 3.6 per cent in 2020 and by 11.9 per cent in 2021, while modest domestic expansion and higher FDI are expected to raise imports by 1.1 per cent in 2020 and by 7 per cent in 2021.
"The main downside risk to GDP growth in 2020 comes from COVID-19 and is therefore highly unpredictable".
"The impact on the economy will be larger than now assumed if the global outbreak is prolonged beyond the first half, or if there is a sustained local transmission in the Philippines", it added.
In its updated "COVID-19 economic impact assessment" as of March 28, ADB said the Philippine economy stands to lose as much as $19.035 billion in GDP losses and up to 2.5 million job losses if there will be a "significant outbreak" this year.
China, which reported the first case of the disease, would see growth slump to just 2.3 percent from 6.1 percent in 2019, while regional growth would struggle forward by 2.2 percent, starkly softer than last year's 5.7 percent, ADB said.
Countries across the globe have instituted varying levels of stay-at-home or shelter-in-place orders for non-essential businesses in an effort to keep people home and halt the spread of the coronavirus.
Earlier, the ADB has already provided two grants worth $8 million to assist the Philippine government's efforts to ease the effect of COVID-19 on its citizens. He said the pandemic could turn into a financial crisis if not contained swiftly.