The economic growth of Asian countries in 2020 is expected to ground to a halt for the first time in six decades, dragged by the coronavirus crisis which wreaks havoc on the region's service sectors and major export destinations, according to the International Monetary Fund on Thursday.
Asia's service industry is faltering due to the virus containment measures which forces businesses to shut, orders people to stay at home, and restricts them from travelling. At the same time the measures paralyze the economic activity in other parts of the world, which are the main export markets for Asian countries.
In 2020, Asia's economy is likely to grow by 0% for the first time in 6 decades, according to the IMF's report on the Asia-Pacific economy issued on April 16. Asia's economy is expected to fare better than other regions which are forecast to suffer contractions this year. However, it will still be far worse compared to the region’s 4.7% growth in the 2008-2009 global financial crisis and the 1.3% expansion during the 1998 Asian financial crisis, the IMF said.
The region's economy is expected to rebound by 7.6% in 2021, assuming the pandemic can be contained and policy measures are effective. However, the outlook remained uncertain, according to Changyong Rhee, director of the IMF's Asia and Pacific Department. Changyong also urged Asian governments to assist households and businesses hardest-hit by the pandemic.
