The International Monetary Fund (IMF) says the Asia-Pacific region is recovering from the worst recession economy in its history.
IMF has lowered its growth forecast for the Asia- Pacific region this year. The agency says there will be a negative 2.2 percent growth this year. Earlier, they said the growth would be minus 1.8 percent.
But the hope is that the economy will turn around next year. There will be a growth of about 7 percent. Of course, China will play the biggest role in this growth.
China’s official statistics show that the country’s economy is doing well in preventing the spread of the coronavirus.
However, the situation in several countries in the region has not improved yet. Especially India, Philippines and Malaysia are still fighting to prevent coronavirus infection. The International Monetary Fund (IMF) says the stains will deepen. Basically, the decline in investment will have a negative impact.
The IMF says,
India’s economy will shrink by 10.3 percent this year. Earlier in June, it was predicted that the contraction would be 4.5 percent.
The Philippine economy is expected to shrink by 8.3 percent this year. It was said in June that it would shrink by 6.3 percent.
Malaysia’s growth will be negative 6 percent. It was forecast to be 3.8 percent in June.
“This is something that is going to be a big risk for the export-oriented region and worst recession economy,” said Jonathan Austre, the IMF’s Asia Pacific acting director. We are concerned about the loss of larger technology centers, not just in China and the United States.
Earlier this week, China released data on the July-September quarter. It shows that the country’s economic growth has been 4.9 percent compared to the same quarter last year.
The IMF expects the region’s growth to be 6.9 percent next year due to China’s growth trend. Though, some things here are still uncertain. We have to see where the situation goes.