Reuters reports that "Asia's economic growth this year will grind to a halt for the first time in 60 years, as the coronavirus crisis takes an "unprecedented" toll on the region's service sector and major export destinations, the International Monetary Fund said on Thursday."

Policymakers must offer targeted support to households and firms hardest-hit by travel bans, social distancing policies and other measures aimed at containing the pandemic, said Changyong Rhee, director of the IMF's Asia and Pacific Department.

"These are highly uncertain and challenging times for the global economy. The Asia-Pacific region is no exception. The impact of the coronavirus on the region will be severe, across the board, and unprecedented," he told a virtual news briefing conducted with live webcast.

"This is not a time for business as usual. Asian countries need to use all policy instruments in their toolkits."

Key notes

  • Asia's economic growth in 2020 likely to grind to halt for 1st time in 60 years - IMF
  • BoJ rate cuts to have limited effect in stimulating the economy, may hurt the financial sector - IMF official. 
  • Asia's economy to expand 7.6% next year if containment policies succeed, though outlook highly uncertain - IMF
  • Asian policymakers must offer targeted support to households and firms hit hardest by containment policies - IMF
  • IMF's Georgieva: Executive board approves creation of short-term liquidity line

Meanwhile, markets overnight were taking the IMF's warnings seriously and risk-off was the theme and given the latest COVID-19 data, we are likely to stay that way: US coronavirus deaths set single-day record increase of 2,371, totalling 30,817 – Reuters tally

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

GBP/USD licks its wounds at record low amid pessimism over UK, risk-aversion

GBP/USD licks its wounds at record low amid pessimism over UK, risk-aversion

GBP/USD consolidates intraday losses around the recently flashed record low near 1.0340, as bears fear the BOE intervention. Hawkish Fedspeak, pessimism surrounding the UK economy and broad risk-aversion add strength to the bearish bias.

GBP/USD News

AUD/USD renews two-year low as bears poke four-month-old support around 0.6500

AUD/USD renews two-year low as bears poke four-month-old support around 0.6500

AUD/USD reverses the early Asian session corrective bounce on Monday as it drops back towards 0.6500. The Aussie pair pokes the support line of a 4.5-month-old descending trend channel. May 2020 low can lure sellers on defying the bearish channel formation.

AUD/USD News

EUR/USD dribbles at 20-year low around 0.9700, ECB vs. Fed, Italy’s election results eyed

EUR/USD dribbles at 20-year low around 0.9700, ECB vs. Fed, Italy’s election results eyed

EUR/USD bears take a breather at the lowest levels since September 2002 amid early Monday morning in Asia. The major currency pair slumped the most in eight days on Friday while refreshing the multi-year low with the 0.9667 number.

EUR/USD News

Gold clings to 29-month bottom near $1,650, focus on Ukraine, Fed’s Powell

Gold clings to 29-month bottom near $1,650, focus on Ukraine, Fed’s Powell

Gold price licks its wounds at a two-year low, around $1,645 during Monday’s Asian session, as bears take a breather after the biggest daily fall in a week ahead of the key catalysts. Also testing the metal prices could be the mixed headlines surrounding Europe and Russia.

Gold News

Ethereum: Assessing the possibility of a post-Merge rally

Ethereum: Assessing the possibility of a post-Merge rally

Ethereum price trades at $1,323 on Sunday, several days after sliding to $1,200. It was a surprise that the largest smart contracts token would give up most of its gains during and after the much-publicized Merge.

Read more

Forex MAJORS

Cryptocurrencies

Signatures