IMF trims 2020 Asia outlook, cites contractions in India, PH, Malaysia

IMF trims 2020 Asia outlook, cites contractions in India, PH, Malaysia

The International Monetary Fund (IMF) said Asia is forecast to shrink by 2.2% this year — worse than its previous forecast in June for a 1.6% contraction.

The IMF said the downgrade for Asia’s economy “reflects a sharper contraction, notably in India, the Philippines, and Malaysia.” It added that India and the Philippines experienced a “particularly sharp” drop in economic activity in the second quarter, “given the continued rise in virus cases and extended lockdowns.”

Further, the Philippine economy is forecast to contract 8.3% in the calendar year 2020, much more than the 3.6% contraction projected in June, while India and Malaysia are expected to shrink by 10.3% and 6% respectively.

However, not all Asian economies had their forecast downgraded. The Chinese economy is expected to grow this year, with the IMF upgrading its 2020 growth forecast to 1.9% from its June projection of 1%.

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