World Bank forecasts Asia’s 2020 GDP at weakest in over five decades amid coronavirus pandemic
|In its latest economic update published on Tuesday, the World Bank offered a dour outlook on East Asia and Pacific region, with the GDP expansion seen at the weakest in over 50 years in 2020 due to the COVID-19 pandemic.
Key takeaways
“East Asia and Pacific region seen at 0.9% in 2020, its lowest rate since 1967, due to impact from the COVID-19 pandemic.”
“China is expected to grow by 2.0% in 2020, while the rest of East Asia and Pacific region is projected to contract by 3.5%.“
'Triple shock' in developing East Asia and Pacific region from the pandemic, as well as the economic impact of containment measures and global recession.”
“It sees an increase of as many as 38 million people in poverty in the region in 2020.”
Market reaction
The bearish Asian growth outlook by the agency has little to no impact on the market mood, as it remains upbeat amid US stimulus hopes and ahead of the first US Presidential election debate.
The Asian equities are mostly higher alongside the US stock futures while the US dollar nurses the previous losses.
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