Asia Economy Contracting for the First Time According to IMF
For the first time in “living memory,” Asia’s economy overall will shrink by at least 1.6% this year, according to the International Monetary Fund. The last projection from the IMF had a forecast of flat growth. The update shows that the IMF sees worsening data impacting all of Asia in the wake of the Covid-19 pandemic.
The IMF concedes that no region, including Asia, will be immune from the ruinous impact of the Coronavirus on the global economy. Yet, though the IMF is predicting a global economic contraction of almost five percent in 2020, it is still forecasting a V-shape recovery in 2021 in excess of positive five percent.
With Covid-19 running an unpredictable course, with signs of a second-wave already present, it is being excessively optimistic to hope for a speedy economic recovery. In fact, even the IMF states it will take years for the economies of Asia and other regions to fully recover, in spite of rosy forecasts for 2021.