The Asian Development Bank (ADB) on Tuesday said that “Developing Asia”, which groups 45 countries in Asia-Pacific, is expected to contract 0.7% this year, the first contraction since 1962.

The ADB’s previous forecast in June had reckoned on 0.1% growth.

“Most economies in the Asia and Pacific region can expect difficult growth path for the rest of 2020,” ADB Chief Economist Yasuyuki Sawada said in a statement.

“The economic threat posed by the COVID-19 pandemic remains potent, as extended first waves or recurring outbreaks could prompt further containment measures,” Sawada added.