Mubasher: The outbreak of coronavirus contributes to slowing down the economic growth in Asia Pacific as it mainly affected trade, tourism, and supply chains, Moody's Investors Service referred.
The main reasons of the disrupting economic growth lie in the reduced Chinese demand for the Asia's exports and supply chain disruptions on the back of coronavirus.
This slowdown comes along with the decelerating global trade which hit the region in 2019, Moody's announced in its recent report ‘Sovereigns – Asia Pacific: Regional growth update following coronavirus outbreak”.
Moody's senior vice president, Christian de Guzman, commented: “Our baseline assumption is that the economic effects of the coronavirus outbreak will continue for a number of weeks before tailing off and allowing normal economic activity to resume."
Guzman added: “We have lowered our China growth forecast to 5.2% for 2020 from 5.8% previously, reflecting a severe but short-lived economic impact, with knock-on effects for economies across the region."
Meanwhile, the leading provider of credit ratings forecast that Macao and Hong Kong in China will be the most deeply affected by the slowing economic growth due to their close economic integration with China.