Page 73 - IBT December 2020

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
The Philippines and India lower than expected situation created by the management system.
have found it very difficult contraction. virus, triggering a
to curb the spread of A not so bright
viruses. Also, a very large China: Only
part of these economies is future ahead
mostly informal. exception Despite sluggish Despite sluggish growth
Lockdown, limited China, the world’s growth and and contraction, Asian
transport, and shut down of second-largest economy, governments are hopeful
many factories and however, remains an contraction, for a full return to economic
businesses has seriously exception not only in Asia Asian activities. But it seems
hampered the economic but in the world scenario. governments 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. are hopeful for a and made available.
Asian countries was And China is surpassing full return to Without vaccines, a
severely affected due to IMF projection in that full-fledged economic
inadequate measures to regard. The Chinese economic recovery is a far cry since
contain the virus. economy was expected to activities. But it there is always the fear of
Southeast Asia is especially see a 1% growth by June, seems highly 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 unlikely till a interconnected. Business
also heavily dependent on quite a comeback for China. reliable vaccine 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 is invented and disruption affects others.
pandemic. World bank COVID-19. But China took made available. Moreover, export-oriented
projects at least 38 million harsh and effective economies of Asia are
‘new poor’ will result from measures and implemented highly dependent on North
these job losses in them quickly throughout America and Europe. Both
Southeast Asia alone. Also, the country. The of the regions are the
the oil price war between infrastructure and real hardest hit in the COVID-19
Russia and Saudi Arabia, estate market in China is pandemic, thus a sharp
Japan’s stagnant economy, expanding. And the Chinese decrease in demand for
and the rising number of government took the consumer products is
affected people in opportunity to export hampering full recovery for
Singapore, Indonesia, and the Asian countries. To
South Korea; all have to do make matters worse,
with the contraction in the second waves of the
total Asian economy. A pandemic have already
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

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