Covid-19

IMF fears second wave of coronavirus in Asia

Summary

Asia fears second wave of Covid-19 outbreak Description video: As America tries to re-open safely, Asia is being watched closely as an example of how easing social distancing measures is contributing to new outbreaks. \n\nAnd as Semir Sejfovic reports, what’s […]

Asia fears second wave of Covid-19 outbreak

Description video:
As America tries to re-open safely, Asia is being watched closely as an example of how easing social distancing measures is contributing to new outbreaks. \n\nAnd as Semir Sejfovic reports, what’s happening there now could prove to be a cautionary tale.\n#Coronavirus #SecondWave #Asia\n\n\nSubscribe: http://trt.world/subscribe\nLivestream: http://trt.world/ytlive\nFacebook: http://trt.world/facebook\nTwitter: http://trt.world/twitter\nInstagram: http://trt.world/instagram\nVisit our website: http://trt.world

IMF fears second wave of coronavirus in Asia

Asia’s economy is likely to contract this year, the IMF said, warning the region could take several years to recover.

Fund Says Asia Economy Sinks 1.6% This Year.

The region is still in a better position compared to other countries in the world, but the current state of the global economy is making it difficult for Asia to grow, says IMF Director of the Asia-Pacific Department Changyung Ri.

He added that Asia cannot be an exception when the whole world is suffering from the consequences of a pandemic.. 

Asia was the first region affected by Covid-19, which first appeared in the Chinese city of Wuhan. After the virus spread around the world, many governments have introduced measures to restrict human interaction and movement, severely dampening economic activity..

Changyun Ri expects the Asian economy to recover strongly next year, but the level of economic activity in the region will still be well below the pre-crisis forecast of the IMF.

He explained that the countries of the region are in «strong dependence» from trade, tourism and remittances — segments of the global economy that are severely affected by the pandemic.

«Even if we develop new medical solutions, the recovery of contact-intensive industries (tourism, mass entertainment) will still develop slowly. Because of this, I think Asia’s recovery will drag on», – he said.

The emergence of a second wave of infection could confuse many governments, since they will no longer have the resources to support their economies, as they did during the first wave, Ri said..

This is especially true for the developing economies of the region, which have relatively limited space for political maneuvers in the second wave..

«So I wonder if a second wave happens, will Asian governments be able to use the same stimulus as in the first crisis? Therefore, we must be more careful», – added the director of the IMF’s Asia-Pacific department.

IMF fears second wave of coronavirus in Asia