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Coronavirus could erase $211 bln from Asia-Pacific economies - S&P

Published 03/06/2020, 08:04 AM
Updated 03/06/2020, 08:08 AM
Coronavirus could erase $211 bln from Asia-Pacific economies - S&P

SYDNEY, March 6 (Reuters) - A fast spreading coronavirus
outbreak could knock $211 billion off the combined economies of
the Asia-Pacific, with Japan, Hong Kong, Singapore and Australia
among the most exposed, S&P Global Ratings said on Friday.
S&P cut its 2020 growth forecast for China to 4.8% from
previous estimate of 5.7%. It forecast Australian growth to slow
sharply to 1.2% from an already below-trend 2.2% in 2019.
Japan would take 0.5 percentage point hit and Korea a 1
percentage point knock.
"The balance of risks remains to the downside due to local
transmission, including in economies with low reported cases,
secondary transmissions in China as people return to work and
tighter financial conditions," S&P said in a report.
In other forecasts, Hong Kong's economy would likely
contract by -0.8% in 2020, Singapore's would flat line, and
Thailand's expansion likely slow to 1.6%.
The coronavirus epidemic, which emanated from China's Hubei
province, has claimed more than 3,000 lives worldwide in less
than three months, prompting monetary policy easings in major
economies including the United States.
S&P did not cut growth forecasts for emerging markets of
Indonesia, Malaysia, the Philippines and India, citing the fact
that reported infections in those countries were still low.
However, it noted the outlook could quickly deteriorate if
the low level of cases was due to minimal testing and if those
countries were swept up in financial contagion.
"We have already had a taster of what can happen with
overshooting exchange rates in response to a pick-up in world's
fear gauge," it said.

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