While the Washington-based lender said Asia is slowly clawing its way out of its worst-ever recession, it lowered its regional growth forecast to −2.2% in 2020, 0.6 percentage points lower than the forecast in June. The downgrade was mostly due to sharper contractions in India, the Philippines and Malaysia. The fund tips China to grow 1.9% this year.
The Asia Pacific region is likely to see economic output remain below pre-pandemic trends over the medium term, even as China’s recovery leads the rest of the world, according to the International Monetary Fund.
In its latest assessment of the region, the IMF warned of significant downside risks and economic scarring as labour market participation falls with the most vulnerable likely to be the hardest hit.
