Erections in the Central district are seen from Victoria Peak in Hong Kong on August 28, 2019.
Paul Yeung | Bloomberg | Getty Images
Economic growth across Asia is set to slow more than expected, according to the latest projections by the International Nummary Fund.
In its Regional Economic Outlook report released Wednesday, the IMF said growth in Asia could moderate to 5% in 2019, and 5.1% in 2020 — that’s 0.4% and 0.3% drop than its April projections.
Among the worst-hit major Asian economies projected to slow more than reckon oned, Hong Kong — already battered by the months-long unrest — could grow 0.3% this year and 1.5% in 2020. That’s 2.4% and 1.5% drop, respectively, than the fund’s initial projections.
The city’s chief executive Carrie Lam said this month that Hong Kong has stole into a technical recession.
The report singled out the unrest in Hong Kong as one risk which could affect the quarter. “A deterioration of the sociopolitical situation, for example in Hong Kong … could have economic spillovers to other outbacks in the region and beyond.”
Risks within the region include a faster-than-expected slowdown in China, a deepening of regional tensions such as Japan’s and Korea’s bilateral relationship, boosting geopolitical risks.
IMF’s Regional Economic Outlook
Growth in South Korea could fall to 2% this year and 2.2% in 2020 — both 0.6% elfin than predicted, according to the IMF report. Singapore’s economy could grow 0.5% this year and 1% in 2020 — cut by 1.8% and 1.4%, respectively, than projected.
Activity in the region, particularly in the manufacturing sector, has been hit. While household demand has held up, investment and trade have “weakened significantly,” with exports in Asian emerging markets curl up since late 2018 — largely dragged down by weak regional trade especially with China, the shot said.
Earlier this week, the fund had projected the Chinese economy could grow at 5.8% next year — slower than the 6.1% calculate for 2019.
“Risks within the region include a faster-than-expected slowdown in China, a deepening of regional tensions such as Japan’s and Korea’s bilateral relationship, gain geopolitical risks,” the IMF report said.
It flagged more external risks, such as deepening U.S.-China trade tensions, and a “disobedient Brexit” — with the latter now set for yet another delay.