Weakness was observed in the economies of Japan and Singapore even before the outbreak of coronavirus exacerbated over the past month. Tighter restrictive measures designed to curb the spread of COVID-19 are likely to exacerbate economic problems, warned Steve Cochrane, Moody’s Analytics Asia Pacific Chief Economist.
Recent official data in Japan showed that in the fourth quarter of 2019, GDP fell by 6.3% compared to the same period in 2018. The decline was the highest since the second quarter of 2014.
The economy of Singapore, according to preliminary estimates, fell by 2.2% in January-March.
“Japan was already in a recession; the first quarter for Singapore was very weak, I think this quarter will be even more difficult for Singapore, given the quarantine measures ,” Cochrane told CNBC.
In addition, there is a possibility of tightening restrictive measures in Japan if the coronavirus continues to spread, he added.
The International Monetary Fund predicts that economic growth in Asia will stop in 2020 for the first time in 60 years , as the coronavirus pandemic causes “unprecedented” damage to the region.
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