(6 March 2020 – Asia) The coronavirus contagion could result in a US$319 billion loss for economies in the Asia Pacific (APAC) according to the latest analysis by S&P Global Ratings.
S&P’s research indicates a ‘U-shaped recovery’ will commence in Q4 2020 yet by then the economic carnage across the region will reach US$211 billion. The hardest hit economies have been Hong Kong, Singapore and Thailand, where population flows and supply chain complexity are highly concentrated.
The loss will be distributed across the household, non-financial corporate, financial and sovereign sectors, with the burden to be on governments to soften the blow with public resources.
“Some economic activities will be lost forever, especially for the services sector” stated S&P Global Ratings Asia-Pacific Chief Economist, Shaun Roache.