Page 72 - IBT December 2020

Asian Economy

contraction of 6% instead of business, export, and medicines, masks, and whopping demand for
the expected mark of 3.8%. tourism activities and the other medical equipment, chinese products. Many are
By the start of 2020, these rising cost of food, home equipment worth still dependent on China
three economies had a government-induced billions of dollars. Many thanks to its large
combined nominal GDP of subsidies, and healthcare is countries were not well manufacturing sector and
at least 3.3 trillion USD. the prime reason behind the prepared to handle the powerful resource
Asian The Philippines and India lower than expected situation created by the management system.
economies have found it very difficult contraction. virus, triggering a A not so bright
to curb the spread of
to face 2.2% viruses. Also, a very large China: Only future ahead
contraction part of these economies is exception
mostly informal. Despite sluggish growth
Lockdown, limited China, the world’s and contraction, Asian
transport, and shut down of second-largest economy, governments are hopeful
many factories and however, remains an for a full return to economic
businesses has seriously exception not only in Asia activities. But it seems
hampered the economic but in the world scenario. highly unlikely till a
growth in these regions. Very few Asian countries reliable vaccine is invented
The massive population of are expected to see growth. and made available.
Asian countries was And China is surpassing Without vaccines, a
severely affected due to IMF projection in that full-fledged economic
inadequate measures to regard. The Chinese recovery is a far cry since
contain the virus. economy was expected to there is always the fear of
Southeast Asia is especially see a 1% growth by June, infection.
hard hit. These economies but now it is expected to Today’s world is
are mostly export-oriented, see a 1.9% increase. This is interconnected. Business
also heavily dependent on quite a comeback for China. runs overseas and one
tourism. Both sectors saw a It was the first to region’s economic
sharp decrease due to the experience the wrath of disruption affects others.
Moreover, export-oriented
IMF projects at least 38 million harsh and effective economies of Asia are
COVID-19. But China took
pandemic. World bank
highly dependent on North
measures and implemented
‘new poor’ will result from
America and Europe. Both
them quickly throughout
these job losses in
REVISES Southeast Asia alone. Also, the country. The of the regions are the
hardest hit in the COVID-19
infrastructure and real
the oil price war between
estate market in China is
pandemic, thus a sharp
Russia and Saudi Arabia,
decrease in demand for
expanding. And the Chinese
Japan’s stagnant economy,
government took the
consumer products is
and the rising number of
FORECAST affected people in opportunity to export hampering full recovery for
the Asian countries. To
Singapore, Indonesia, and
make matters worse,
South Korea; all have to do
with the contraction in the
pandemic have already
total Asian economy. A second waves of the
By Amarta Galib Chowdhury sharp drop in oil price and begun affecting the
demand has also hampered developed world. Cheap
Middle Eastern oil labor made Asian
South Korea, Japan, or recovery, and in the face of economies profitable for
Indonesia were in focus the second wave of economies. Some countries, foreign investors, but with
from global economic COVID-19, things don’t look like Indonesia, Vietnam or many factories closed
forecasters. In June 2020, very bright for Asia in the Bangladesh are not yet down, an increasing
the International Monetary coming future. facing severe contraction, infection rate in India,
The coronavirus started in Fund (IMF) said the Asian expecting a contraction of but the fall of Indian and Indonesia, and many other
other Southeast Asian
China, an Asian country. economy will see a Why the 4.5% but it faced 10.3% giants is certainly affecting Asian countries with large
Though it spread contraction of 1.6% this contraction instead. The same goes for the overall Asian picture. populations and a lack of
throughout the world, year. However, recently they the Philippines and IMF forecast includes the investment means full
everyone kept an eye on have revised the data and The IMF says some major Malaysia. By June 2020, the fact that the rising number recovery remains uncertain.
Asian countries. With their projected a 2.2% Asian economies didn’t fare Philippino economy was of affected sectors thanks to Overall, conditions don’t
thriving population and contraction. Several major as expected during the expected to contract by 3.6% the second wave - a halt in seem very bright for the
massive economies, Asian giants are said to be COVID-19 pandemic. For but it was 8.3% in reality. construction and small Asian economies.
countries like India, China, lagging in terms of example, India was Malaysia too experienced a
70