It was stated that the said developments are expected to cause the economic growth to slow down in the region, and that the negative effects will make the most felt in tourism and trade.
China’s growth prospect falls
The growth expectation of China has been reduced from 5.8 percent to 5.2 percent for this year, and it is emphasized that the decrease in growth may have serious short-term economic consequences and may have a chain effect in the Asia-Pacific region.
South Korea also affected
In the statement that the economic growth forecast for South Korea was decreased from 2.1 percent to 1.9 percent, it was stated that the asset quality of South Korean banks could be affected by the developments in the future due to the environment created by the epidemic.
The statement noted that South Korea banks may face larger risks if large companies request assistance and authorities use more aggressive liquidity measures.