All clear for a stronger GDP growth trajectory in 2021

All clear for a stronger GDP growth trajectory in 2021 – Asia Securities Research


Leading stockbroking firm Asia Securities (Pvt) Ltd., maintained that all signs point to a strong GDP growth trajectory in 2021. The latest Economic Outlook report titled Balancing the Priorities – The New Normal forecasts a GDP growth of 5.4% for 2021, driven by improved investor sentiment and consumer demand, an accommodative monetary policy environment, and a pickup in global demand.
Asia Securities’ report on 27 March 2020—the first such report to forecast the impact of COVID-19—forecasted the economy to contract by 13.0%—17.0% YoY in 2Q 2020. The report considered three probability-weighted scenarios combining a top-down and bottom-up analysis. The firm’s assessment was in-line with the 16.3% YoY contraction for 2Q 2020. While the outlook for 2021 remains largely positive due to improved policy certainty and a stable government, the firm notes that several challenges remain.

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