IMF projects Asia Pacific To Clock Lowest Growth Since 60 years Due To COVID-19 Pandemic

~ DHEERAJ VERMA

The global Covid-19 pandemic is exacting a terrible human toll and menacing the world economy and growth. On 16th April 2020, the International Monetary Fund quoted that "Asia’s economic growth will grind to halt for the first time in 60 years".

International Monetary Fund was formed on 27 December 1945. IMF promotes international monetary co-operation and facilitates international trade. It aims to foster sustainable economic growth, make resources available to members experiencing balance of payments difficulties. There are 45 countries on the list of developing Asia-Pacific countries.

The coronavirus pandemic is at varying stages in the region, with daily cases rising in some regional economies, flattening in others, and reviving in still others in second or third waves.

Growth and economy of developing Asia have worsened amid a revival of coronavirus cases in some areas, with regional GDP expected to contract by 0.7% this year.

Economic growth in developing Asia collapsed in the second quarter(April 1 to June 30), with several regional economies recording quarterly contraction for the first time since the Asian financial crisis of 1997-1998.

In India, economic activity is unlikely to resume fully in March 2021. India’s economy is expected to contract by 9.0% in the year ending 31 March 2021. Economic activity may start to resume more fully from the early fiscal year 2021 starting from April next year, with growth expected to rebound, gradually, to 8.0%.

The coronavirus is spreading rapidly in India, with confirmed cases surpassing 4m in early September, and the virus has penetrated deep into rural areas. Many states and districts have implemented local Iockdowns, and the resumption of economic activity has been slow.

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