IMF lowers Asia outlook to see 2.2% contraction in 2020 – Bloomberg
In its regional report, the International Monetary Fund (IMF) offers a dour economic outlook of the Asia Pacific region due to the coronavirus pandemic, despite the solid turnaround seen in the Chinese economy, per Bloomberg.
Key quotes
“Asia is slowly clawing its way out of its worst-ever recession, it lowered its regional growth forecast to −2.2% in 2020, 0.6 percentage points lower than the forecast in June. The downgrade was mostly due to sharper contractions in India, the Philippines and Malaysia. The fund tips China to grow 1.9% this year.”
“Returning to full capacity will be a long slog.”
“Not being premature with withdrawing support both fiscally and monetary should be on the agenda for policymakers not just in China, but globally.”
“In some cases where inflation remains low, debt monetization could be appropriate, provided it is well communicated, limited in size, time-bound, and implemented within a clear operational framework that preserves central bank independence and does not impede monetary policy.”
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