Economics
Growth Downgrades in Southeast Asia Fuel Calls for Stimulus
- Region’s economic growth forecasts slide on outbreak worries
- Indonesia, Malaysia among those signaling more fiscal support
Construction workers labor on a building towering above the business district of Jakarta, Indonesia.
Photographer: Dimas Ardian/Bloomberg
This article is for subscribers only.
The acceleration of the coronavirus outbreak over the past week is putting downside pressure on forecasts for Southeast Asian economies, leading policy makers to unveil support measures.
Economists have slashed this year’s growth forecasts for China to about 5.5%, compared with 6.1% last year. With most of Southeast Asia heavily reliant on China-linked supply chains and tourism, that has meant growth downgrades in the region as well: Thailand, for example, is seen slowing to barely above 2% this year, from 2.4% in 2019.