The mainland's water problems shave off at least 5.5 per cent of its gross domestic product and the already severe water shortage may rise fivefold in 20 years, the Asia Development Bank (ADB) says.
More than two-thirds of the mainland's 660 cities already suffer water shortages, which has led to a 2 per cent loss in GDP, the ADB's East Asia director Amy Leung said.
The GDP was affected because water shortages crimped industrial production, agriculture and other business activities.
Some 43 per cent of the water in the seven major river basins had not been meeting the quality standard of drinking water, Leung said.
'Water quality in major lakes and reservoirs is also very poor due to untreated wastewater.'
Floods, which had been occurring more frequently of late, had led to a 1 per cent GDP loss, Leung said.