The prediction for the Asian economy has been revised by the International Monetary Fund (IMF) on June 30. As a result of the COVID-19 pandemic fallout, the IMF has revised down its projection with a 1.6 percent contraction in 2020.
In a blog post, Chang Yong Rhee, Director of the IMF’s Asia and Pacific Department, wrote, “Projections for 2020 have been revised down for most of the countries in the (Asian) region due to weaker global conditions and more protracted containment measures in several emerging economies”.
Rhee has given partial credit to early stabilization of the coronavirus in some countries as the reason behind better performance of Asia’s economic growth in the first quarter of 2020 than previously projected.
The latest projection of the IMF is a downgrade to the projection of zero growth in April’s World Economic Outlook forecast. With the coronavirus pandemic continues to create ripple effect across the globe, the projection points to stronger global headwinds.
Chang Yong Rhee further stated that in the absence of a second wave of infections and with unprecedented policy stimulus to support the recovery, growth in Asia is projected to rebound strongly to 6.6 percent in 2021.
Chang Yong Rhee wrote, “But even with this fast pickup in economic activity, output losses due to COVID-19 are likely to persist.”
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