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Home / Business / Covid’s revival in Japan and South Korea may hit Asia’s economic recovery

Covid’s revival in Japan and South Korea may hit Asia’s economic recovery



On March 29, 2020, in Tokyo, Japan, a person wearing a mask walked through the Asakusa district, and it started to snow.

Big S Zhihong | Getty Images

Singapore-2020 is drawing to a close. Due to its relatively good control over the coronavirus outbreak, many investors regard Asia as one of the regions with the best economic prospects next year.

However, some analysts warned that the recent surge in Covid cases in certain countries may bleak the economic outlook in the region.

Research firm Pantheon Macroeconomics said: “For some Asian giants, when New Year’s Eve is 1

2 o’clock, this year’s Covid-19 plight is unlikely to improve.”

To be sure, data compiled by Johns Hopkins University shows that compared with Europe and the United States, the number of daily reported cases in many parts of Asia where the virus first infected is still low.

For some Asian giants, when the clock hits 12 on New Year’s Eve, the plight of Covid-19 is unlikely to get better this year.

However, some countries are now fighting a pandemic, which is far worse than what they experienced previously in the pandemic. Even regions that have achieved major success in containing the virus may not be spared. Taiwan this week reported its first locally transmitted case since April 12, highlighting the difficulty of eradicating Covid.

The following is the relationship between Asia and the new economy fighting the surge in the number of coronavirus infections, and how this will affect its economic outlook.

Japan

  • According to data from Hopkins University, as of Wednesday, Covid-19 statistics: a total of 207,007 confirmed cases and 2,941 deaths.

Hopkins data shows that the number of daily reported coronavirus infections in Japan in November began to rise again, exceeding 3,000 for the first time last week.

According to Reuters, the country’s medical organization has warned that the health care system is under extreme pressure from the pandemic. According to the Japan News Agency, although Japanese Prime Minister Yoshihide Suga has not declared himself a state of emergency, he said he will suspend the travel subsidy program to slow the spread of the coronavirus.

Economists at the Pantheon Macroeconomist wrote in a report on Wednesday that the Japanese government’s “relatively loose” social isolation rules do not seem to have worked, and this may lead to stricter measures in the coming months.

Economists said: “Therefore, it cannot be ruled out that a second, more effective national emergency will occur in Japan early next year.” They added that this will put pressure on Japan’s economy in the first quarter of 2021.

South Korea

  • According to data from Hopkins University, as of Wednesday, Covid-19 statistics: a total of 53,533 confirmed cases and 756 deaths.

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

However, unlike Japan, the South Korean government has taken a tough stance on the new Covid case.

Yonhap News Agency reported that the government announced on Tuesday that it would ban gatherings of more than five people nationwide and ordered the closure of ski resorts and other winter sports facilities and other tourist attractions.

According to Pantheon Macroeconomics, taking this step will allow most of South Korea’s economic losses to be contained in the fourth quarter of this year.

Malaysia

  • Hopkins University data shows that as of Wednesday, Covid-19 statistics: a total of 98,737 confirmed cases and 444 deaths.

Hopkins data shows that before the country’s latest surge from October, the Southeast Asian country had a slump in Covid cases. This led the government to implement a new round of partial blockade measures in certain areas of the country.

Economists at the consulting firm Capital Economics said the outlook for the Malaysian economy has become “optimistic” this quarter, especially in terms of private consumption.

In their report on Tuesday, they stated: “The implementation of the second wave of viruses and many restrictions on movement will reverse the strong rebound in private consumption in the third quarter. Google’s high liquidity data shows that social distancing is still an economic activity. Resistance.”.

But economists say that other parts of the economy (such as exports) should continue to perform strongly, so the overall economic blow from the latest recovery may be “much smaller” than the previous wave.


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