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Covid’s revival in Japan and South Korea could hurt Asian economic recovery

On March 29, 2020, it snows when people wearing face masks walk in the Asakusa area of ​​Tokyo.

Yoshinori Ohsumi | Getty Images

Singapore — As 2020 approaches the end, many investors see Asia as one of the regions with the best economic outlook for next year, thanks to its relatively good management. Coronavirus Outbreak.

However, some analysts warn that the recent surge in Covid cases in some countries could undermine the region’s economic outlook.

“For some Asian giants, this year’s Covid-19 problem is unlikely to improve any further when the watch hits 12 on New Year’s Eve,” said research firm Pantheon Macroenomics.

Indeed, daily reported cases in many parts of Asia where the virus was first infected remain low compared to Europe and the United States, data compiled by Johns Hopkins University show.

For some Asian giants, this year’s Covid-19 problem is unlikely to improve any further when the clock hits 12 on New Year’s Eve.

However, some countries are now fighting a much worse resurrection than they experienced in the early days of the pandemic. Even areas with great success in virus containment are unavoidable. Taiwan reports the first locally infected case this week After April 12 — Emphasizes the difficulty of eradicating Covid.

Let’s take a look at the Asian economy, which is fighting a new surge in coronavirus infection, and how it affects the economic outlook.

Japan

Pantheon Macroeconomics economists wrote in a Wednesday report that the Japanese government’s “relatively soft” social distance expansion rules do not seem to work, which could lead to stricter measures in the coming months. ..

“Therefore, we cannot rule out a second and more effective national emergency in Japan early next year,” said the economist. They added that it would put pressure on the Japanese economy in the first quarter of 2021.

Korea

  • Covid-19 tabulation: Hopkins data show 53,533 cumulative confirmed cases and 756 deaths as of Wednesday.

Like Japan, South Korea’s daily new cases this month have reached unprecedented levels, surpassing 1,000 for the first time since their outbreak.

However, unlike Japan, in South Korea, the government is taking a tougher stance in response to the new wave of the Covid case.

Government announced on Tuesday National ban on gatherings of 5 or more people, And ordered the closure of tourist attractions such as ski resorts and other winter sports facilities, the Yonhap News Agency reported.

According to Pantheon Macroeconomics, this measure will help limit most of South Korea’s economic damage to the fourth quarter of this year.

Malaysia

  • Covid-19 tabulation: Hopkins data show 98,737 cumulative confirmed cases and 444 deaths as of Wednesday.

Southeast Asian countries have cases of Covid The latest surge starting in October, Hopkins data showed. As a result, the government has begun to impose new rounds of partial blockades in some parts of the country.

An economist at consultancy Capital Economics said Malaysia’s economic outlook was “not so bright” this quarter, especially in terms of consumer spending.

“The re-imposition of many restrictions on the second wave and movement of the virus has reversed the strong backlash of consumer spending in the third quarter. Frequent Google mobility data is still hampering social distance. It suggests that they are, “they said in a report on Tuesday. ..

However, economists say the overall economic impact of the recent resurgence is likely to be “much less” than the previous wave, as other parts of the economy, such as exports, should remain strong. Stated.

Covid’s revival in Japan and South Korea could hurt Asian economic recovery

https://www.cnbc.com/2020/12/25/covid-resurgence-in-japan-south-korea-could-hit-asias-economic-recovery.html Covid’s revival in Japan and South Korea could hurt Asian economic recovery

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