Asia suffering from worst recession in living memory, IMF says

10:48 AM | 22 Oct, 2020
Asia suffering from worst recession in living memory, IMF says

WASHINGTON – Growth forecasts for the region have been downgraded again, this time from -1.6% to -2.2% for this year, the International Monetary Fund (IMF) says.

However, the hope is for an overcome of almost 7% next year. China to play a big part in the region's development next year, as the latest data depicts improvement from the recession caused by the virus

But there are still countries, like India, Philippines and Malaysia, continue to battle with Covid-19 infections.

The scars will be deep, said the IMF, pointing to lower investment which will have a knock-on effect by the middle of the decade.

Not only are economies in the region dealing with the fallout from the pandemic, but they are also affected by the US-China trade war, and the growing hostilities between the two economic superpowers.

This is something, for a very export-orientated region, that is going to be a big risk going forward. the IMF's acting director for Asia and Pacific said. We worry about the decoupling of major technology hubs, not just in China and the US but on a large scale, which would have the effect of diminishing hi-tech trade leading to inefficient production."

One of the challenges will be diversifying Asia's economies away from an over-reliance on exports, which the IMF calls a work in progress.

Earlier in the week, China released its information for the July to September quarter which demonstrated financial development of 4.9% compared to the same quarter last year.

The good news is that the IMF expects the region to grow by 6.9% in 2021 but that totally depends on the transmission of the virus in the region.