Economic growth in Asia in 2020 will be zero for the first time in 60 years, since coronavirus crisis is “unprecedented damage” on the service sector of the region and the main directions of export.
About it reports Reuters with a reference to the regional report of the IMF, RBC-Ukraine online reports.
Want Asia looks better than other regions in the economic downturn, the forecast for the current year worse than the average growth rate of 4.7% during the global financial crisis of 2008-2009 and an increase of 1.3% during the financial crisis in Asia in the late 1990-ies, the IMF said.
The IMF expects economic growth in Asia next year by 7.6%, based on the assumption that deterrence will be successful, but noted that the Outlook is very uncertain.
As the IMF notes, in contrast to the global financial crisis caused by the collapse of Lehman Brothers in 2008, pandemic has directly affected the service sector in the region, forcing people to stay home and closed shops. The export sector of the region also suffered from falling demand for their products from key trading partners such as the United States and European countries.
It is expected that China’s economy will grow by 1.2% this year compared with a rise of 6% in the January IMF forecast amid weak exports and losses in domestic activity due to social distance.
It is expected that the second largest economy in the world will happen by the restoration of activity at the end of this year, and next year growth will rise to 9.2%. However, according to the IMF, there are risks to the growth prospects of China as the virus could return and delay the normalization.