IMF reports that COVID-19 pandemic will bring Asia’s 2020 growth to halt for 1st time in 60 years

The International Monetary Fund (IMF) in its report on the Asia-Pacific region stated that Asia’s economic growth in 2020 will grind to a halt for the first time in 60 years due to the COVID-19 pandemic.

Report Highlights:
♦ The IMF’s Asia and Pacific Department directed the policymakers to offer targeted support to households and firms hardest-hit by travel bans, social distancing policies and other measures aimed at containing the pandemic.
♦ IMF forecasted a 7.6% expansion in Asian economic growth in 2021 on the assumption that containment policies succeed. It also said that the outlook is highly uncertain.
♦ It also stated that The impact of the coronavirus on the region will be severe, across the board, and unprecedented.
♦ It suggested that the Asian countries need to use all policy instruments in their toolkits.
♦ Asia is set to fare better than other regions that suffered economic contractions. The projection is expected to be worse than the 4.7% average growth rate throughout the global financial crisis.

International Monetary Fund (IMF):
Formed on: 27 December 1945
Headquarters: Washington, D.C., The US
Managing Director: Kristalina Georgieva
Chief Economist: Gita Gopinath
Membership: 189 countries
Official language: English
IMF promotes international monetary co-operation and facilitates international trade. It aims to foster sustainable economic growth, make resources available to members experiencing balance of payments difficulties.