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The International Monetary Fund (IMF) is cutting its growth estimates for economic activity in the Asian region. The pessimism spread to the markets.
LOCKOUT: The corona pandemic shut down the world and hit the world economy hard. Here from Tokyo in March, when the city closed.
Koji Sasahara / AP
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The IMF expects economic activity to fall 2.2 percent this year. It’s 0.6 percent lower than what was estimated in June, writes Bloomberg.
“It is the worst situation for this region in my memory,” wrote the IMF’s Jonathan D. Ostry in a blog post after the forecasts were released.
In addition, he notes that China, which was hit by the pandemic before other countries, has had a strong catch after the first quarter in the “lockdown.” However, the country is only among the top economies that saw growth this year.
Growth forecasts for China have been adjusted up to 1.9 percent this year.
– A rare positive news in a sea of negatives, writes Ostry.
The IMF expects 6.9 percent growth in 2021. Although more countries are likely to recover better than feared during the year, according to the IMF, output will remain lower by the end of 2021 expected before the pandemic. paralyzed the world.
Stock market crash
The grim growth outlook spread to the stock exchanges Thursday morning. This was the status at closing:
- Tokyo’s Nikkei 225 fell 0.70 percent
- Shanghai Composite Down 0.38%
- Hang Seng in Hong Kong rises 0.13 percent
- Kospi in Seoul fell 0.67 percent
- The FTSE Straits Times in Singapore rose 0.09 percent
- ASX 200 in Sydney down 0.29 percent
The price of oil, which has been in the red in the morning, has seen an increase throughout the day. Around 11:30, the price of a barrel of North Sea oil is $ 41.74, up 0.10 percent on the day.
Wall Street in red
Wednesday night also fell in the United States.
Talks about the virus crisis package continue. Before opening time, White House Chief of Staff Mark Meadows said there was “good progress in the negotiations.”
Still, all three Wall Street indices ended in the red at closing time on Wednesday night.
According to Pelosi, Tuesday was the deadline for the crisis package to go into effect before the November 3 elections. If there is no decision before then, it may be necessary until the New Year.
However, in an interview with Bloomberg News, Pelosi says that the deadline is not set in stone, and that the goal is for both sides to exchange their best proposals on a number of unresolved issues and not have a final bill ready.
