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The novel coronavirus pandemic threatens the economic growth of Asia and is likely to halt the economy for the first time in six decades. The International Monetary Fund rendered the forecast on Thursday as the global contagion continues to inflict disruptions in the services and export sectors.
The IMF released figures indicating that while Asia may cope better than other regions suffering from a downturn, the projection is worse than the 4.7% average growth rate monitored during the global financial crisis. It also fell behind the 1.3% increase during the Asian financial crisis of 1990.
Policymakers must provide support measures to households and businesses affected by travel restrictions, social distancing regulations, and other policies set to combat the virus, said Changyong Rhee, director of the IMF’s Asia and Pacific Departments.
“These are highly uncertain and challenging times for the global economy. The Asia-Pacific region is no exception. The impact of the coronavirus in the region will be severe, across the board, and unprecedented,” he added.
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