Coronavirus Will Cause The Economic Growth Of East Asia To Be The Slowest

Coronavirus Will Cause The Economic Growth Of East Asia To Be The Slowest

The pandemic of the new coronavirus will cause the economic growth of East Asia, the Pacific and China to be the slowest in more than 50 years, the World Bank warned. The bank expects the region's expansion to reach only 0.9% this year, at least since 1967. The economic slowdown will put 38 million people in poverty again. The Chinese economy will grow by 2% this year, forecasts SB. It is supported by government spending, strong exports and a low number of coronavirus cases since March. On the contrary, it is hampered by weak domestic consumption. According to the World Bank, the rest of the East Asia-Pacific region will decline by 3.5%. Efforts to stop the spread of the disease have significantly reduced economic activity in the region, the Bank said. "These domestic problems have been exacerbated by the global recession caused by the pandemic, which has hit the economies of East Asia and the Pacific, highly dependent on trade and tourism." The countries of the region will have to implement fiscal reforms to mobilize revenues to mitigate the economic and financial consequences of the pandemic. Social protection programs can help support the reintegration of employees into the economy.