IMF revises down Asian economy forecast; warns of 12tr loss globally.

The coronavirus outbreak has been very costly to Asian economic development, the International Monetary Fund (IMF) said as it revised down its forecast for the region and warned of possible protracted recovery.

'For the first time in living memory, Asias growth is expected to contract by 1.6 per centa downgrade to the April projection of zero growth, Chang Yong Rhee, director of the IMFs Asia and Pacific Department, wrote in a blog post.

According to its recent outlook, the global real GDP could shrink by 4.9 per cent this year, followed by a partial recovery, with growth at 5.4 per cent in 2021. This would result in a cumulative loss to the global economy over two years of over 12 trillion from this crisis.

Even the recent positive developments in the epidemic situation in some countries that allowed them to at least partly reopen have not helped to change the gloomy projections. The IMF said it had to downgrade the economic outlook for most countries in the region as they are dependent on global supply chains, making growth 'impossible while the 'whole world is suffering.

Although the IMF expects Asia to rebound strongly to 6.6 per cent as early as next year, it noted that the...