Asia is suffering from the worst recession in living memories.

The International Monetary Fund (IMF) says Asia Pacific is poised to emerge from the worst recession in memory of a long time.

Asia is suffering from the worst recession in living memories.

Growth forecasts for the region have once again been downgraded, from -1.6% to -2.2% this year.


However, according to the IMF, there is a glimmer of hope for a jump of about 77% next year.


China will play a major role in the region's growth next year, with its latest figures showing that the virus is recovering from the crisis.


But there are still a lot of dark clouds on the horizon as countries, including India, the Philippines and Malaysia, are battling COV-19 infection.


"The scars will be deep," the IMF said, pointing to low investment, which will have an impact by the middle of the decade.


US-China tensions

The region's economies are not only plagued by epidemics, but also by the US-China trade war and the growing animosity between the two economic powers.


Speaking to the BBC's Asia Business Report on Thursday, Jonathan Austria, the IMF's acting director for Asia and the Pacific, said: "This is a very export-oriented region, which is a lot to move forward. There is a great danger.


"We are concerned about the elimination of large-scale technology centers, not only in China and the United States, but also on a large scale, which will have the effect of reducing high-tech trade, which could lead to inefficient production."


Earlier this week, China released its data for the July-September quarter, showing economic growth of 4.9 percent compared to the same quarter last year.


The IMF sees China as "a rare positive figure in a sea of ​​negativity."


Draw out recovery

The good news is that the IMF expects the region to grow by 6.9% in 2021, but this depends on a number of factors, including virus control.


"With the right policies and international support, Asia's engines can work together and move the region forward when needed," Mr. Ostry said.


One of these challenges is to keep Asia's economy from becoming too dependent on exports, which the IMF has called a "growth process."


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