World Bank Cautions About Slowdown in Developing Economies

Arslan Butt•Tuesday, March 31, 2020•1 min read

Latest estimates by the World Bank indicate that the coronavirus pandemic could cause a severe reduction in growth among developing economies across East Asia and the Pacific, even as China’s GDP slows down. Even though the crisis continues to escalate, the bank estimates economic growth in developing economies in the region to slow down from around 5.8% in 2019 to anywhere between 2.1% and -0.5% this year.

After growing at around 6.1% in 2019, China’s economy could witness a slowdown to 2.3% or even as low as 0.1% in the baseline and lower-case scenarios respectively. The World Bank recommends that developing economies in Asia need to focus their investments on healthcare and roll out more fiscal stimulus measures to offset some possible economic damage the pandemic could drive.

Additionally, economies could bolster international cooperation and develop new public-private partnerships to boost production of key medical supplies and maintain financial stability in the aftermath of the coronavirus crisis. Easier access to credit for households to support consumer consumption could also aid in economic recovery once the risks from the virus start receding.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.