With the epicentre of the Covid-19 pandemic lying in China, Asia has been hit hard by the outbreak. It has seen businesses close their doors, supply chain disruption, widespread quarantines, travel bans and other restrictions to help reduce the spread of the virus. This has of course had a huge impact on Asia’s economy, which we’ll explore in further detail here.
How has Asia’s economy been affected by the Covid-19 pandemic?
The coronavirus outbreak caused much of Asia to shut down, with people quarantined indoors and many businesses coming to a halt in attempts to contain the pandemic. Many Asian countries rely heavily on tourism, an industry that has come to a standstill amidst the global lockdown – which has certainly had a huge impact on the Asian economy. According to a recent article by The Telegraph, “Asia’s economy is likely to suffer zero growth this year for the first time in 60 years, the IMF said in a report on the Asia-Pacific region released on Thursday”.
How have Asian currencies been affected?
Of course, with economic growth across Asia grinding to a halt for this first time in decades, currencies have stumbled – in part due to drops in tourism and affected supply chains. According to Retail Banker International, “Australia has the worst performing major currency in the region” at the time of publishing, and “currencies in both Singapore and Thailand have also plunged”. The fluctuation in currencies across Asia and the global market are sure to affect both investors and Forex traders, who may look to change tactics in the coming months.
What are businesses doing to help?
Asia’s private sector is making efforts to not only save itself, but the market as a whole. Many Asian companies are helping in any way they can, for instance donating significant funds toward the relief effort, or increasing production of med-tech and testing equipment.
A recent article by Forbes outlines what many companies are doing to help. For instance, it states that the China Online Education Group “donated 5.25 million Philippine pesos ($103,000) worth of medical supplies” while Fujifilm have begun to “develop artificial intelligence technology to diagnose and treat patients with Covid-19-induced pneumonia”. You can check out their article for more information on what other businesses are doing to help.
The Covid-19 pandemic has had a huge effect on the Asian economy to date, and as time goes on, we will become more aware of the long-term implications.