Asia
PM: Asia must combine forces for a better future
Prime Minister Sheikh Hasina on Friday said the Asian countries must combine their forces to help address their common challenges for betterment of future generations.
“The Asian countries have common development challenges and should face them collectively,” the premier said in a video statement at the 27th International Nikkei Conference on Future of Asia in Tokyo.
She said Bangladesh will always work with friends and partners to ensure a peaceful, sustainable and prosperous Asia for the future generations.
She placed five proposals where the Asian countries can best cooperate for the benefit of the future generations.
These include cooperation on best use of ICT, safeguard fairness and justice, sustainable and balanced development and establishing win-win international relations.
Also read: PM seeks international support for Bangladesh Delta Plan 2100
Hasina once again requested all to contribute and help in finding an amicable settlement of Rohingya crisis.
“We are hosting 1.1 million forcibly displaced Rohingyas from Myanmar. They must be sent back to their homeland in the Rakhine State of Myanmar in safety, security, and dignity,” she said.
Stressing the role of Asia in the world the PM said “It is imperative to ensure peace among conflicting countries by resolving differences through discussion.
Referring to climate change issues she mentioned that Bangladesh has been active and vocal on climate change action in all discourses, including at the recent COP26.
Highlighting Bangladesh’s development in the past 13 years and its UN-recognised graduation to a developing nation the prime minister said her government is taking various steps for smooth transition after 2026.
In this connection, she requested all, especially Japan and other OECD countries to extend the preferential facilities to Bangladesh at least until 2029 to help it attain the overarching goals of sustainable development by 2030.
Also read: PM: Let’s not forget climate crisis amid geo-political tension
“Bangladesh is at different stages of negotiations on FTA with several countries, and open to negotiating FTA and CEPA with other countries, including Japan,” she informed.
The PM said that Bangladesh, as rest of the world, was heavily affected by the ongoing Covid-19 pandemic.
She said that before the pandemic in 2019, Bangladesh’s GDP growth rate was 8.15 per cent.
“In 2020, we could maintain a positive growth rate of 3.51 per cent followed by 6.94 per cent in 2021. We expect to attain over 7 per cent growth rate in the current fiscal year,” she hoped.
While tackling the impacts of the pandemic, she said her government could successfully manage the challenges of the pandemic relatively well.
She said Bangladesh’s efforts have been recognized in the Nikkei's COVID-19 Recovery Index for April 2022, where Bangladesh is ranked 5th out of 121 countries, and the best-performing country in South Asia in COVID management and recovery.
She told the conference that Bangladesh’s GDP is projected to grow to USD 465 billion, merchandise export income over USD 52 billion, remittance over USD 21 billion and per capita income at USD 2,824 in the Fiscal Year ending in June.
She said her government has made development pro-people and inclusive over the last 13 years.
Nikkei Inc., Japan’s largest business media group and the publisher of The Nikkei and Nikkei Asia, organised May 26-27 conference.
The Future of Asia is an international gathering where political, economic and academic leaders from the Asia-Pacific region offer their opinions frankly and freely on regional issues and the role of Asia in the world.
Asian shares retreat as oil climbs back above $100
Shares were mostly lower in Asia on Friday after Wall Street extended a rally into a third day and oil prices pushed higher, surpassing $105 per barrel.
Tokyo and Sydney advanced while Hong Kong, Shanghai and Seoul declined.
Ukrainian President Volodymyr Zelenskyy called for more help for his country after days of bombardment of civilian sites in multiple cities over the past few days.
The war, and plans for President Joe Biden to speak with Chinese President Xi Jinping later Friday were among the uncertainties overhanging markets.
READ: Gazette issued reducing VAT on edible oil import
The White House said the conversation will center on “managing the competition between our two countries as well as Russia’s war against Ukraine and other issues of mutual concern.”
Wrapping up a two-day meeting, the Bank of Japan opted to keep its monetary policy unchanged, with its benchmark interest rate at minus 0.1%. Japan's central bank has been keeping interest rates ultra low and pumping tens of billions of dollars into the world's third largest economy for years, trying to spur faster growth.
Tokyo's Nikkei 225 index rose 0.1% to 26,667.23 and the S&P/ASX 200 in Sydney gained 0.3%, to 7,275.30.
But Hong Kong's Hang Seng sank 2.6% to 20,952.53 after barreling higher for two days after Chinese leaders promised to provide more support for the economy and markets, suggesting Beijing might temper its crackdowns on technology and real estate companies.
The Shanghai Composite index slipped 0.3% to 3,205.90.
On Wall Street, the S&P 500 climbed 1.2% on Thursday, closing at 4,411.67, after surging more than 2% in each of the prior two days for its best back-to-back performance in nearly two years.
Big swings in markets have become the norm as investors struggle to handicap what will happen to the economy and the world’s already high inflation because of Russia’s invasion of Ukraine, higher interest rates from central banks around the world and renewed COVID-19 worries in various hotspots.
The Dow Jones Industrial Average added 1.2% to 34,480.76. The Nasdaq rose 1.3% to 13,614.78. The tech-heavy index is on pace for its biggest weekly gain in more than a year.
Smaller company stocks outpaced the broader market. The Russell 2000 index surged 1.7% to 2,065.02.
The market’s latest gains come after the Federal Reserve raised its key interest rate Wednesday for the first time since 2018, something Wall Street had been expecting for months.
A barrel of U.S. crude oil gained $2.58 to $105.56 per barrel in electronic trading on the New York Mercantile Exchange. It jumped 8.4% on Thursday to settle at $102.98.
Brent crude, the international standard, added $2.42 to $109.06 per barrel in London. It leaped 8.8% to settle at $106.64 per barrel.
Prices have been careening on doubts over both supplies of and demand for oil. After briefly topping $130 early last week, a barrel of U.S. crude fell to nearly $94 a barrel on Wednesday.
But reports of a sale of Russian crude oil to India and apparent setbacks in peace talks between Ukraine and Russia have renewed concern over possible shortfalls in supplies.
Asked about the reports India was buying oil from Russia at a discounted price, India’s External Affairs Ministry spokesman Arindam Bagchi did not directly confirm or deny them.
“India imports most of its oil requirements," Bagchi said. “We are exploring all possibilities in the global energy market. I don’t think Russia has been a major oil supplier to India.”
He also noted that European countries are importing oil from Russia.
Dribbles of news about the state of negotiations between Russia and Ukraine have caused many of the sharp reversals. So too recently have worries about economic shutdowns in China because of surges in COVID-19 infections, which could hit demand for energy.
On Thursday, the Chinese government said companies in Shenzhen, a major business center, will be allowed to reopen while efforts to contain coronavirus outbreaks progress. Their earlier closures had rattled financial markets.
A wave of better-than-expected reports on the U.S. economy Thursday may also have helped markets. Fewer workers applied for unemployment claims last week, and builders broke ground on more homes last month than economists expected.
In other trading, the yield on the 10-year Treasury note fell to 2.17% from 2.20% late Thursday.
The dollar rose to 118.78 Japanese yen from 118.60 yen. The euro fell to $1.1082 from $1.1092.
Romantic Beach Honeymoon Destinations in Asia
A honeymoon is not only a holiday; it is the beginning of a lovely adventure. To indulge in such a wonderful event, the continent of Asia provides a wealth of possibilities as romantic getaways for newlyweds. The continent boasts some of the most stunning sites that are suited for a fantastic honeymoon plan. Blessed with beauty, luxurious resorts, and indulgent hospitality, Asia provides the ideal venues to celebrate love and togetherness. Here is a hand-picked list of the most romantic beach honeymoon spots in Asia.
Best Beach Honeymoon Places and Ideas in Asia
Bali, Indonesia
It is claimed to be the world's number one archipelago, with long beaches and incredible cultural and natural splendours. Bali tops our list of honeymoon destinations in Asia.
Indonesia is made up of a staggering 14,752 islands. Bali falls under Indonesia's Lesser Sunda Islands. The Sunda Islands are a set of islands that are separated into four nations and a province. This spiritual location is a feast for the senses!
Read Best Places for Honeymoon in Bangladesh
You can visit at least a few volcanic islands here. Banyan Tree Ungasan, Four Seasons Resort Bali at Jimbaran Bay, and Anantara Seminyak Bali Resort are also available for accommodation.
With spellbinding beach locations, Denpasar International Airport, located in Bali's 'South Kuta' sector, serves as the entry to this paradise. Additionally, flights land at Ngurah Rai International Airport. The majority of beach resorts in the south are within a half-hour drive of the airports. If you start the journey from Jakarta's capital, you may also ride a bus.
Sri Lanka
Sri Lanka is an island that looks like a 'teardrop' in the huge Indian Ocean. It is one of the top honeymoon locations in Asia for making lasting memories with your sweetheart. The country is officially known as the Democratic Socialist Republic of Sri Lanka.
Read Beautiful Camping Sites Near Dhaka to Spend Quality Time with Nature
Previously known as Ceylon, it is home to an astounding variety of romantic resorts. Colombo, Galle, Sigiriya, Kandy, and Nuwara Eliya are just a few of the sites to visit in Sri Lanka. These beaches can be fantastic honeymoon destinations for the newly married couples!
Maldives
You cannot discuss the top honeymoon destinations in Asia without bringing up the Maldives! The country is officially known as the Republic of Maldives. Likewise SriLanka, Maldives is situated in the Indian Ocean. The area has a total of 1,192 islands, albeit only roughly 200 of them are inhabited.
With the nicest resorts on mesmerising beach locations Maldives is called paradise on earth. A romantic honeymoon trip to the Maldives may be all you need to start your love life.
Read Visit Chattagram City: 10 Best Tourist Spots for Sightseeing and Recreation
The island archipelago in the Indian Ocean's balmy waters has been featured on more beach honeymoon getaway magazine covers than you can count. However, you have to agree that they do look incredible!
Celebrations for Year of the Tiger are muted, but bring hope
People across Asia prepared Monday for muted Lunar New Year celebrations amid concerns over the coronavirus and virulent omicron variant, even as increasing vaccination rates raised hopes that the Year of the Tiger might bring life back closer to normal.
The Lunar New Year is the most important annual holiday in China and falls on Tuesday, Feb. 1. Each year is named after one of twelve signs of the Chinese zodiac in a repeating cycle. The Year of the Tiger follows the Year of the Ox.
This will be the third new year in a row celebrated in the shadow of the pandemic. It was two days before the holiday in 2020 that China locked down Wuhan — a city of 11 million people — following the detection of the coronavirus there.
Some 85% of Chinese are now fully vaccinated, according to Our World in Data, and more Chinese have been traveling domestically this year, despite government warnings. Many people prepare to celebrate by buying red lanterns and other decorations for their homes, and food to mark the beginning of a new year.
Also read: NYC Lunar New Year parade showcases support for China, Wuhan
Still, 63-year-old retiree Huang Ping lamented as he shopped at a Beijing flower market that the new year’s “atmosphere has faded” with the closure of temples and seasonal fairs to prevent large crowds. He said he hoped for better times soon.
“I wish for the epidemic to pass as early as possible and for the economy to recover as well,” he said.
Another retiree, Han Guiha, said he was planning on making the best of the situation.
“I’ll stay at home enjoying good food and wine,” the 62-year-old said. “I will make my house clean and beautiful. Right now the virus is spreading and we need to be careful.”
Some 260 million people traveled in China in the first 10 days of the holiday rush starting Jan. 17 — fewer than before the pandemic but up 46% over last year. Overall, the government forecasts 1.2 billion trips during the holiday season, up 36% from a year ago.
This year the celebrations coincide with the Beijing Winter Olympics, which open near the end of the weeklong holiday. The Chinese capital has been tightening controls to contain coronavirus outbreaks ahead of the sporting event.
The Games are being held inside sealed-off “bubbles,” and organizers have announced that no tickets will be sold to the general public and only selected spectators will be allowed.
“I’ll watch the games with my kid, but of course on TV,” said Wang Zhuo, a retail manager from Beijing.
In Hong Kong, which saw a surge in cases in January, people wore surgical masks as they shopped for red and tiger-themed holiday items. The city has closed schools because of the outbreaks and required restaurants to close at 6 p.m., forcing many to dine at home for traditional New Year’s Eve family dinners.
Also read: Pandemic dampens Pahela Boishakh celebrations in Bangladesh
With the Year of the Tiger, many are hoping the traditional powers attributed to the animal will help put the country on a path out of the pandemic, said Chen Lianshan, a Beijing university expert on Chinese folklore.
“The tiger is a protection against evil spirits and it can defeat demons and ghosts of all kinds, and the Chinese believe that the plague is one kind of an evil spirit,” he said.
Elsewhere in Asia, there were signs that celebrations might not be as subdued as they were last year. Despite ongoing pandemic restrictions, most people are now vaccinated with at least two shots in many of the region’s countries.
In the old quarter of Hanoi, people flocked on the weekend to the traditional market to get decorations and flowers for the festival, known as Tet in Vietnam.
Vietnam’s daily case count remains at about 15,000 new infections but its low hospitalization and death rate has allowed the country to reopen for business and cautiously resume social activities.
More than 70% of Vietnamese are fully vaccinated, and 80% have had at least one shot, according to Our World in Data.
Still, the country has cancelled Tet fireworks and other large events to minimize risks this year.
In Thailand, where 69% of people are fully vaccinated, Bangkok decided this year not to hold traditional Lunar New Year celebrations in Chinatown for the second year in a row, but was going ahead with lighting seasonal lanterns on the district’s main street.
In Singapore, Lunar New Year celebrations are more subdued due to coronavirus restrictions that allow residents to receive only five unique visitors a day, and preferably only one visit daily. The rules are likely to get in the way of the tradition of visiting relatives during the holiday.
“This year it will be rather quiet, as people are spacing out visiting over the next two weeks instead of on the first or second day of the new year,” said Sebastian Lim, a Singapore resident.
Business was brisk at a flower market in the Taiwanese capital of Taipei on Monday as people made last minute purchases. Some 73% of Taiwanese are fully vaccinated.
“The pandemic is surely affecting it a bit, but people still like flowers, so they come out and buy flowers,” said one shopkeeper, who only gave his name as Lee.
“But prices are lower because we have overproduction and we can’t export some items — this is our biggest problem.”
Ethnic Chinese shopkeepers in Myanmar face a bigger dilemma, as the new year coincides with the one-year anniversary of the military’s seizure of power from the democratically-elected government.
Supporters of the growing anti-military movement have called for people to close their shops and businesses in a nationwide “silent strike” protest. Military leaders have warned that anyone who participates could face legal action, including charges of violating the country’s counter-terrorism law.
But that has left shopkeepers who had planned to close anyway for the Lunar New Year to spend time with their families wondering what to do.
“Normally we are closed during Chinese new year, but don’t know what to do this year,” said Hu, a noodle vendor in Yangon who wouldn’t give his full name out of fear of reprisal. “We want to close, but we have to be afraid of the authorities.”
Asia looks to China-focused trade bloc for virus recovery
Members of a China-centered Asian trade bloc that takes effect Jan. 1 are hoping the initiative, encompassing about a third of world trade and business activity, will help power their recoveries from the pandemic.
The 15-member Regional and Comprehensive Economic Partnership, or RCEP, includes China, Japan, South Korea and many other Asian countries. It does not include the U.S. or India.
The deal slashes tariffs on thousands of products, streamlining trade procedures and providing mutual advantages for member nations. It also takes into account issues such as e-commerce, intellectual property and government procurement. But it has less stringent labor and environmental requirements than those expected of countries in the European Union or the smaller Trans-Pacific Partnership, which includes many of the same countries but not China.
RCEP is expected to boost trade within the region by 2%, or $42 billion, both through increased trade and also through diversion of trade as tariff rules change, experts say.
Extra help will be needed: Two years of lockdowns, border closures, mandatory quarantines and other restrictions have cost millions of people their jobs while also contributing to disruptions in manufacturing and shipping that are snarling supply chains worldwide.
Countries confronted with outbreaks of the fast-spreading omicron coronavirus variant have reined in recent moves to reopen to international travel.
Regional economies contracted by 1.5% in 2020. They’ve bounced back, with the Asian Development Bank forecasting growth at 7.0% this year — boosted by low year-before figures. But next year growth is expected to slow to 5.3%.
The pandemic slowed progress in ratifying the trade deal for some countries.
China was the first to ratify RCEP, in April, after it was signed in November 2020 at a virtual meeting of leaders from its 15 member countries. Indonesia, Malaysia and the Phlippines have yet to do so, though they are expected to ratify it soon. Myanmar, whose government was ousted by the military on Feb. 1, ratified it but that is pending acceptance by other members.
Beijing is fully prepared for the new trading bloc, having already fulfilled 701 “binding obligations” for RCEP, Chinese vice minister for commerce Ren Hongbin said Thursday.
“RCEP is of great significance building new development patterns and a milestone in opening up our economy,” Ren said according to a transcript of a news conference on the ministry’s website. He said the block would draw member economies closer and “greatly boost confidence in economic recovery from the pandemic.”
Like any trade deal, RCEP has its detractors.
In a recent legislative hearing shown on YouTube, government officials urged Indonesian lawmakers to pass RCEP, one of three backlogged trade arrangements.
READ: China releases shortened negative lists for foreign investment
Elly Rachmat Yasin, a member of a commission responsible for agriculture, the environment, forestry and marine affairs, questioned Indonesia’s trade minister, Muhammad Lutfi, about the wisdom of Indonesia's involvement, noting that India opted out largely due to fears that Chinese imports would swamp its markets.
Lutfi responded that RCEP would help boost exports and attract extra inflows of up to $1.7 billion in foreign investment by 2040.
Philippine Trade Secretary Ramon Lopez says he expects lawmakers there to ratify the pact in January, after running out of time to get it done in December, when the government was busy dealing with the aftermath of a typhoon that struck on Dec. 16, leaving 375 people dead and hundreds of thousands without adequate housing.
The trade bloc is expected to open many service sector jobs to workers in member countries — a big draw for countries like the Philippines that rely heavily on remittances from migrant workers.
“RCEP will uplift GDP and lower poverty incidence. It will open up more market access for our exports and widen sourcing of needed inputs that will improve competitiveness of our manufacturing sector and exporters," Lopez said.
READ: China orders lockdown of up to 13 million people in Xi’an
“There is no reason nor logic not to ratify RCEP," he said, adding that failing to do so would be “catastrophic" since investors would likely favor countries within the trading bloc.
China’s wandering elephants may finally be heading home
An elephant herd that fascinated locals and people around the world by making a yearlong journey into urbanized southwest China, raiding farms and even a retirement home for food, appears finally to be headed home.
Local authorities have deployed trucks, workers and drones to monitor the elephants, evacuated roads for them to pass safely and used food to steer them away from populated areas. Despite their entrance into villages and a close approach to the Yunnan provincial capital of Kunming, no animals or humans have been injured.
Read: 2 elephants that crossed from Myanmar rescued from Bay
The 14 Asian elephants of various sizes and ages were guided across the Yuanjiang river in Yunnan on Sunday night and a path is being opened for them to return to the nature reserve where they lived in the Xishuangbanna Dai Autonomous Prefecture.
The elephants left the reserve more than a year ago for unknown reasons and roamed more than 500 kilometers (300 miles) north. After reaching the outskirts of Kunming, a center for business and tourism, they turned south again, but still are far from the reserve.
One male that separated from the herd was subsequently tranquilized and returned to the reserve.
Asian elephants are among the most highly protected animals in China and their population has grown to around 300, even while their habitat has shrunk because of expanded farming and urban growth.
As of Sunday night, the herd was still in Yuanjiang County, approximately 200 kilometers (125 miles) from the reserve.
Read: Don t gawk or give food: Wandering elephants near China city
However, the National Forestry and Grassland Administration said the animals were in a “suitable habitat” after crossing the river.
A notice issued by provincial government said the herd’s progress was significant and it would continue to work on getting the elephants back in their natural habitat soon.
Nagasaki marks 76th anniversary of atomic bombing
Nagasaki on Monday marked the 76th anniversary of the U.S. atomic bombing of the Japanese city with its mayor urging Japan, the United States and Russia to do more to eliminate nuclear weapons.
In his speech at the Nagasaki Peace Park, Mayor Tomihisa Taue urged Japan’s government to take the lead in creating a nuclear-free zone in Northeast Asia rather than staying under the U.S. nuclear umbrella — a reference to the U.S. promise to use its own nuclear weapons to defend allies without them.
Read:Hiroshima marks 76th anniversary of US atomic bombing
Taue also singled out the United States and Russia — which have the biggest arsenals by far — to do more for nuclear disarmament, as he raised concern that nuclear states have backtracked from disarmament efforts and are upgrading and miniaturizing nuclear weapons.
“Please look into building a nuclear-weapons-free zone in the Northeast Asia that would create a ‘non-nuclear umbrella’ instead of a ‘nuclear umbrella’ and be a step in the direction of a world free of nuclear weapons,” Taue said as he urged Japan’s government to do more to take action for nuclear disarmament.
At 11:02 a.m., the moment the B-29 bomber dropped a plutonium bomb, Nagasaki survivors and other participants in the ceremony stood in a minute of silence to honor more than 70,000 lives lost.
The Aug. 9, 1945, bombing came three days after the United States made the world’s first atomic attack on Hiroshima, killing 140,000. Japan surrendered on Aug. 15, ending World War II.
Read:Tokyo shares peace message with Dhaka marking Hiroshima Day
The mayor also called Japan’s government and lawmakers to quickly sign the 2017 Treaty on the Prohibition of Nuclear Weapons that took effect in January.
Tokyo renounces its own possession, production or hosting of nuclear weapons, but as a U.S. ally Japan hosts 50,000 American troops and is protected by the U.S. nuclear umbrella. The post-WWII security arrangement complicates the push to get Japan to sign the treaty as it beefs up its own military while stepping up defense cooperation with other nuclear-weapons states such as Britain and France, to deal with threats from North Korea and China, among others.
Prime Minister Yoshihide Suga said the security environment is severe and that global views are deeply divided over nuclear disarmament, and that it is necessary to remove distrust by promoting dialogue and form a mutual ground for discussion.
Read:Origami paper cranes folded by Rohingyas fly to Hiroshima with peace message
Taue also called for a substantial progress toward nuclear disarmament made at next year’s Nuclear Non-Proliferation Treaty conference, “starting with greater steps by the U.S. and Russia to reduce nuclear weapons.”
He asked Suga’s government to step up and speed up medical and welfare support for the aging atomic bombing survivors, or hibakusha, whose average age is now over 83 years.
ADB lowers its economic growth forecast for developing Asia
The Asian Development Bank (ADB) has marginally lowered its economic growth forecast for developing Asia this year amid the second wave of the pandemic.
It projects a 7.2 percent economic growth for developing Asia this year compared with its 7.3 percent forecast in April, as renewed Covid outbreaks tend to slow the recovery in some economies of the region.
Read: ADB praises Hasina's leadership in Covid fight
However, the growth outlook for 2022 is upgraded to 5.4 percent from 5.3 percent, according to a release from the Bank.
Excluding the newly industrialised economies of Hong Kong, the Republic of Korea, Singapore and Taipei,developing Asia’s updated growth outlook is 7.5 percent for 2021 and 5.7 percent for 2022, compared with the earlier projections of 7.7 percent and 5.6 percent, respectively.
The supplement to ADB’s flagship economic publication, Asian Development Outlook (ADO) 2021, provides updated projections for the region’s economies and inflation levels amid the pandemic.
“Asia and the Pacific’s recovery from the pandemic continues, although the path remains precarious amid renewed outbreaks, new virus variants, and an uneven vaccine rollout,” said ADB Chief Economist Yasuyuki Sawada.
“On top of containment and vaccination measures, phased and strategic rejuvenation of economic activities -- for instance, trade, manufacturing, and tourism--- will be key to ensure that the recovery is green, inclusive, and resilient.”
The Covid pandemic remains the biggest risk to the outlook, as outbreaks continue in many economies.
Read: ADB triples COVID-19 response package to $20bn
Daily confirmed cases in the region peaked at about 434,000 in mid-May.
They narrowed to about 109,000 at the end of June, concentrated mainly in South Asia, Southeast Asia, and the Pacific. Meanwhile, the vaccine rollout in the region is gaining pace, with 41.6 doses administered per 100 people by the end of June -- above the global average of 39.2, but below rates of 97.6 in the United States and 81.8 in the European Union.
East Asia’s growth outlook for 2021 is raised to 7.5 percent, from 7.4 percent in April, amid a stronger-than-expected recovery by the newly industrialised economies of Hong Kong, the Republic of Korea and Taipei.
The subregional growth forecast for 2022 is retained at 5.1 percent. The growth outlook for China is likewise maintained at 8.1 percent this year and 5.5 percent in 2022, amid steady performances by industry, exports, and services.
This year’s growth outlook for Central Asia has been raised to 3.6 percent, from 3.4 percent, in the April forecast.
This is mainly due to an improved outlook for Armenia, Georgia, and Kazakhstan -- the subregion’s largest economy. Central Asia’s outlook for 2022 remains at 4.0 percent.
Projections for South Asia, Southeast Asia, and the Pacific for 2021 are lowered as renewed outbreaks are met with containment measures and restrictions, hampering economic activity.
South Asia’s growth outlook for fiscal year 2021 is lowered to 8.9 percent from 9.5 percent. The forecast for India is downgraded by 1.0 percentage points to 10.0 percent.
Southeast Asia’s 2021 outlook is revised to 4.0 percent from 4.4 percent, while the projection for Pacific economies is lowered to 0.3 percent from 1.4 percent. However, the 2022 growth forecasts for these subregions are upgraded to 7.0 percent, 5.2 percent and 4.0 percent, respectively.
The inflation forecast for Asia and the Pacific this year is raised to 2.4 percent, from 2.3% in April, reflecting rising oil and commodity prices. The projection for 2022 remains at 2.7 percent.
Vaccine deliveries rising as delta virus variant slams Asia
As many Asian countries battle their worst surge of COVID-19 infections, the slow-flow of vaccine doses from around the world is finally picking up speed, giving hope that low inoculation rates can increase and help blunt the effect of the rapidly spreading delta variant.
With many vaccine pledges still unfulfilled and the rates of infection spiking across multiple countries, however, experts say more needs to be done to help nations struggling with the overflow of patients and shortages of oxygen and other critical supplies.
Some 1.5 million doses of the Moderna vaccine were set to arrive Thursday afternoon in Indonesia, which has become a dominant hot spot with a record high infections and deaths.
The U.S. shipment comes in addition to 3 million other American doses that arrived Sunday, and 11.7 million doses of AstraZeneca that have come in batches since March through the U.N.-backed COVAX mechanism, the last earlier this week.
Read:Immunized but banned: EU says not all COVID vaccines equal
“It’s quite encouraging,” said Sowmya Kadandale, health chief in Indonesia of UNICEF, which is in charge of the distribution of vaccines provided through COVAX. “It seems now to be, and not just in Indonesia, a race between the vaccines and the variants, and I hope we win that race.”
Many, including the World Health Organization, have been critical of the vaccine inequalities in the world, pointing out that many wealthy nations have more than half of their populations at least partially vaccinated, while the vast majority of people in lower-income countries are still waiting on a first dose.
The International Red Cross warned this week of a “widening global vaccine divide” and said wealthy countries needed to increase the pace of following through on their pledges.
“It’s a shame it didn’t happen earlier and can’t happen faster,” Alexander Matheou, the Asia-Pacific director of the Red Cross, said of the recent uptick in deliveries. “There’s no such thing as too late — vaccinating people is always worth doing — but the later the vaccines come, the more people will die.”
Vietnam, Thailand and South Korea have all imposed new lockdown restrictions over the past week as they struggle to contain rapidly rising infections amid sluggish vaccination campaigns.
In South Korea — widely praised for its initial response to the pandemic that included extensive testing and contact tracing — a shortage in vaccines has left 70% of the population still waiting for their first shot. Thailand, which only started its mass vaccination in early June, is seeing skyrocketing cases and record deaths, and only about 15% of people have had at least one shot. In Vietnam, only about 4% have.
“Parts of the world ... are talking about reclaiming lost freedoms such as going back to work, opening the cinemas and restaurants,” Matheou told The Associated Press. “This part of the world is far away from that.”
Indonesia started aggressively vaccinating earlier than many in the region, negotiating bilaterally with China for the Sinovac jabs. Now about 14% of its population — the fourth largest in the world — has at least one dose of a vaccine, primarily Sinovac. Several countries also have their own production capabilities, including South Korea, Japan and Thailand, but still need more doses to fill the needs of the region’s huge population.
“Both Moderna and AstraZeneca have been really critical in ramping up these numbers and ensuring that the supplies are available,” said UNICEF’s Kadandale, noting that Indonesia plans to have some additional 208.2 million people vaccinated by year’s end and is giving 1 million shots daily. “Every single dose does make a huge difference.”
Many other countries in the region have vaccination rates far below Indonesia’s for a variety of reasons, including production and distribution issues as well as an initial wait-and-see attitude from many early on when numbers were low and there was less of a sense of urgency.
Some were shocked into action after witnessing the devastation in India in April and May as the country’s health system collapsed under a severe spike in cases that caught the government unprepared and led to mass fatalities.
At the same time, India — a major regional producer of vaccines — stopped exporting doses so that it could focus on its own suffering population.
Read:FDA adds warning about rare reaction to J&J COVID-19 vaccine
The U.S. has sent tens of millions of vaccine doses to multiple countries in Asia recently, part of President Joe Biden’s pledge to provide 80 million doses, including Vietnam, Laos, South Korea and Bangladesh. The U.S. plans to donate an additional 500 million vaccines globally in the next year, and 200 million by the end of 2021.
“Indonesia is a critical partner for U.S. engagement in Southeast Asia and the vaccines come without strings attached,” said Scott Hartmann, a spokesman for the U.S. Embassy in Jakarta. “We’re doing this with the object of saving lives and ending the global pandemic, and equitable global access to safe and effective vaccines is essential.”
Earlier in the week, German Foreign Minister Heiko Maas, whose country is one of the largest financial backers of COVAX, accused Russia and China of using their delivery of vaccines for policy leverage.
“We note, in particular with China, that the supply of vaccines was also used to make very clear political demands of various countries,” he said, without providing specific examples.
There are also growing questions about the effectiveness of China’s Sinovac vaccine against the delta variant of the virus.
Thai officials said that booster doses of AstraZeneca would be given to front-line medical personnel who earlier received two doses of Sinovac, after a nurse who received two doses of Sinovac died Saturday after contracting COVID-19.
Sinovac has been authorized by WHO for emergency use but Indonesia also said it was planning boosters for health workers, using some of the newly delivered Moderna doses, after reports that some of the health workers who had died since June had been fully vaccinated with the Chinese shot.
“We have still found people getting severe symptoms or dying even when they are vaccinated,” Pandu Riono, an epidemiologist with the University of Indonesia, said about the Sinovac shot. “It’s only proven that some vaccines are strong enough to face the delta variant — AstraZeneca, Moderna and Pfizer seem capable.”
While the majority of recent deliveries have been American, Japan was sending 1 million doses of AstraZeneca on Thursday each to Indonesia, Taiwan and Vietnam as part of bilateral deals, and Vietnam said it was receiving 1.5 million more AstraZeneca doses from Australia.
The Philippines is expecting a total of 16 million doses in July, including 3.2 million from the U.S. later this week, 1.1 million from Japan, 132,000 of Sputnik V from Russia, as well as others through COVAX.
Japan is also is sending 11 million through COVAX this month to Bangladesh, Cambodia, Iran, Laos, Nepal, Sri Lanka, and others. Canada this week committed an additional 17.7 million surplus doses to the 100 million already pledged through COVAX, which is coordinated by Gavi, a vaccine alliance.
In addition to distributing some donated vaccines, financial contributions to COVAX also help fund the purchase of doses to distribute for free to 92 low or moderate income nations.
Read: Pfizer to discuss vaccine booster with US officials Monday
Earlier this month, it took blistering criticism from the African Union for how long it was taking for vaccines to reach the continent, which noted that just 1% of Africans are fully vaccinated.
Gavi said the vaccine shortfall so far this year is because the major COVAX supplier, the Serum Institute of India, diverted production for domestic use.
In its latest supply forecast, however, Gavi shows deliveries just beginning a sharp uptick, and still on track to meet the goal of about 1.5 billion doses by year’s end, representing 23% coverage in lower and middle income nations, and more than 5 billion doses by the end of 2022.
“It’s better to focus on vaccinating the world and to avoid hoarding doses,” said Matheou, of the Red Cross. “Sharing vaccines makes everyone safer.”
Asia welcomes US vaccine donations amid cold storage worries
Health officials and experts in Asia have welcomed U.S. plans to share 500 million more doses of the Pfizer vaccine with the developing world, but some say it would take more than donations alone to address huge vaccination gaps that threaten to prolong the pandemic.
President Joe Biden was set to make the announcement Thursday in a speech before the start of the Group of Seven summit in Britain. Two hundred million doses — enough to fully protect 100 million people — would be shared this year, with the balance to be donated in the first half of 2022, according to a source familiar with the matter who confirmed the news of the Pfizer sharing plan.
Jaehun Jung, a professor of preventive medicine at South Korea’s Gachon University College of Medicine, said the U.S. donations may proveto be a “huge turning point” in the global fight against COVID-19, but also lamented that the help couldn’t come earlier.
He said the extremely cold storage temperatures required for Pfizer shots would present challenges for countries with poor health systems and called for U.S. officials and the New York-based drug maker to explore the possibility of easing the requirements.
Read:AP source: US to buy 500M Pfizer vaccines to share globally
He said the delay in U.S. help was “understandable, because the United States initially had its own troubles with supplies while inoculating its own population. But for now, it’s critical to move up the timing of the vaccine provisions to the earliest possible point.”
According to the person who spoke to the AP, the Biden administration plans to provide the 500 million shots it purchases from Pfizer to 92 lower income countries and the African Union over the next year through the U.N.-backed COVAX program.
The United States has faced increasing pressure to outline its global vaccine sharing plan. Inequities in supplies around the world have become more pronounced while there’s increasing concern over newer virus variants emerging from areas with consistently high COVID-19 circulation.
The White House had earlier announced plans to share 80 million doses globally by the end of June, most through COVAX.
The additional donation of the Pfizer shots is crucial because the global disparity in vaccination has become a multidimensional threat: a human catastrophe, a $5 trillion economic loss for advanced economies, and a contributor to the generation of mutant viruses, said Jerome Kim, the head of the International Vaccine Institute, a non-profit dedicated to making vaccines available to developing countries.
Read: G7 must ensure vaccine access in developing countries: UN experts
Jeong Eun-kyeong, director of South Korea’s Disease Control and Prevention Agency, said the success of Biden’s vaccine-sharing plan would depend mainly on how fast the shots could be manufactured and sent to countries in need amid global shortages.
She also echoed Jung’s concerns about Pfizer’s cold chain requirements and said the U.S. donations should be accompanied with efforts to improve infrastructure and educate health workers in receiving countries.
“It’s very important to manage international cooperation so that the whole world can be vaccinated quickly,” she said during a briefing.
The United States has yet to confirm the 92 lower-income countries that would be receiving the Pfizer shots.
In Asia, Jung said that India and Southeast Asia are in desperate need of donations. Vaccinating isolated North Korea could also prove to be a difficult challenge.
Some experts say donations alone wouldn’t be enough to close the huge gaps in supplies and call for a transition toward a distributed system of vaccine manufacturing where qualified companies around the world would produce their own shots without intellectual property constraints.
Read: WTO panel considers easing protections on COVID-19 vaccines
But Jung said many developing countries depending on COVAX donations don’t have the industrial resources to manufacture advanced vaccines like Pfizer’s mRNA shots.
As countries around the world struggled to access vaccines, unable to secure bilateral deals with companies like Pfizer, many have turned to China. China has exported 350 million doses of its vaccines to dozens of countries, according to its Foreign Ministry.
China has pledged 10 million doses to COVAX, and the Chinese drug maker Sinopharm said last week it had just finished a batch of vaccines for sharing with COVAX. The WHO had approved the vaccine for emergency use last month.
While Chinese vaccines have faced scrutiny because of a lack of transparency in sharing clinical trial data, many countries were desperate to take what was available and found the shots easier to use as they could be stored in normal refrigerators.