India's economy to shrink 10.3%, China to expand 1.9% this year: IMF
The International Monetary Fund(IMF)warned on Wednesday that Asia would witness sharper-than-expected contraction in economic activity amid the coronavirus pandemic.
"Fear of infection and social distancing measures are dimming consumer confidence and will keep economic activity below capacity until a vaccine is developed," an IMF report said.
IMF said next year's growth will be below par in Asia especially in those countries which are dependent on tourism.
The international body said Asia's economy may contract 2.2 per cent this year due to a slump in economic activity in Malaysia, Philippines and India.
The IMF warned that India's economy is likely to shrink 10.3 per cent this year even as forecast China's economy to expand 1.9 per cent even as it said Asia's economy is likely to grow 6.9 per cent next year.
"With the pandemic seemingly far from over, policy support should be sustained and, in some cases, increased," the IMF said, adding,"full arsenal of policy support is needed that includes steps to help households and businesses cope with structural changes caused by COVID-19 such as permanent job losses in industries like tourism."
The IMF had earlier urged the Middle East and North African countries to accelerate reforms and diversify their economies amid the coronavirus pandemic as it projected the economies of the MENA region to shrink by five per cent this year.
The region which is rich in oil may continue to experience downturn in oil prices with the average price of oil expected to be $41.69 a barrel this year and $46.70 a barrel in 2021, down from $57-$64 average in 2019, the IMF forecast highlighted.