The International Monetary Fund (IMF) said it expects growth in Asia to stall at zero percent in 2020.
“This is the worst growth performance in almost 60 years, including during the Global Financial Crisis (4.7 percent) and the Asian Financial Crisis (1.3 percent),” Chang Yong Rhee, director of the IMF’s Asia and Pacific department, wrote in a blog post. But still, Asia looks to fare better than other regions in terms of economic activity, he added.
Rhee said downward revisions are substantial, ranging from 3.5 percentage points in the case of South Korea, to over 9 percentage points in the case of Australia, Thailand and New Zealand. The latter three countries have been hit by the global tourism slowdown while Australia has also been affected by lower commodity prices.
China is projected to decline from 6.1% in 2019 to 1.2% in 2020. Overall, IMF expects the global economy to contract in 2020 by 3%, describing it as “the worst recession since the Great Depression.”