Virus crisis to restrain Asia’s growth at lowest since 1967
The coronavirus pandemic will likely drag Asian countries down to their lowest level of expansion in more than 50 years. Meanwhile, 38 million people are expected to succumb back to poverty, the World Bank warned on Monday.
The bank foresees a 0.9% growth for the region this year, its lowest rate since 1967. China’s economy is predicted to record a 2% growth backed by government spending, upbeat exports, and easing coronavirus infections. However, slow domestic consumption might cap any progress.
To negate the economic and financial impact brought by the virus crisis, countries in the region may need to implement fiscal reform to stimulate revenue. Moreover, social protection programs seem like a viable means to bolster employment and nurse the economy back to health, the Washington, DC-based bank said.