Economists have been eager to predict just how extensive of an impact the Wuhan coronavirus will have on the global economy in the coming months but it appears that the effects are already being felt by some Asian countries.
Singapore Downgrades 2020 GDP Expectations
The Singaporean economy expanded by a decade-low of 0.7 percent in 2019 but it appears that the bustling city-state did not expect the effects of the CoViD-2019 strain will bring to its economy.
On Monday morning, Singapore's Ministry of Trade and Industry (MTI) said it is expecting gross domestic product (GDP) to only expand by 0.5 percent due to mounting fears around the novel coronavirus that has killed thousands in China, Channel News Asia reported.
The MTI set its new estimated range at only between 0.5 percent and 1.5 percent for 2020 after the ministry set the forecast range at 0.5 percent to 2.5 percent three months earlier.
Before the announcement was made on Monday, Prime Minister Lee Hsien Loong said last week that the coronavirus crisis will have a massive impact on the Singaporean economy and the effects will be felt for at least a few quarters.
As of Monday, Singapore has 75 confirmed patients of the novel coronavirus.
Japan Prepares for Economic Blow of Coronavirus
In Japan, things haven't been so great for the local economy as well amid rising fears around the quarantined Diamond Princess docked in Yokohama.
The Japanese Cabinet Office revealed that Japan's GDP contracted as it only sat at 6.3 percent for the fourth quarter of 2019. While Minister for Economic and Fiscal Policy Yasutoshi Nishimura noted that there could be a "gradual improvement" this year, the novel coronavirus is denting hopes for a better growth rate.
According to Nikkei Asian Review, Nishimura urged the government to "pay sufficient attention to the impact of the novel coronavirus on the economy, both in and outside of Japan."
To help curb the effects of slower tourism rates in Japan due to the coronavirus outbreak, the Japanese government will take necessary steps. It is expected that the central bank will make use of reserve funds in this regard.
Japan's tourism industry was hit hard by the confirmation that a a growing number of passengers on the Diamond Princess docked at the Yokohama port has contracted the Wuhan coronavirus.
Malaysia Warned of Coronavirus' Economic Impact on Trade and Business
The Associated Chinese Chambers of Commerce and Industries (ACCCIM) warned on Sunday that Malaysia's trade and business activities may be interrupted by the ongoing coronavirus outbreak.
According to the Malay Mail, the ACCCIM noted that the coronavirus crisis will batter the Chinese economy and Malaysia, as one of the trading partners of the strain's origin country will be impacted as well.
The group urged the government to review whether its policies and working capacity can curb the economic impact of the coronavirus, especially in trading segments and business sectors that are crucial in domestic growth.
A report is expected to be provided by the ACCCIM that provides recommendations for the Malaysian government to work on in health, finance, industry and tourism support as Asian countries battle the disease.
So far, data from the Johns Hopkins University revealed that Malaysia has 22 confirmed CoViD-19 cases.
South Korea Announces Assistance for Industries Impacted by Coronavirus
South Korea's Finance Minister Hong Nam-ki said on Monday that the government will provide assistance for sectors and industries largely affected by the coronavirus outbreak.
During a meeting with officials, Hong said emergency loans of up to 300 billion won will be provided to budget carriers in the country as part of the efforts in cushioning the impact of the health crisis on the South Korean economy, local news outlet KBS World Radio reported.
Banks will also be encouraged to offer up to 50 billion won in loans for tourism companies running smaller operations. An emergency fund of 60 billion won will also be allocated to assist the shipping industry.
To boost tourism amid fears of contracting the infection, South Korea will also implement stricter disinfection measures in tourist destinations around the country.
South Korea has a total of 30 confirmed cases, with 408 patients under investigation (PUIs) for potential infection of the Wuhan coronavirus.
