How can Asian markets recover after Covid-19?

Asia has been a nation of firsts during the coronavirus outbreak, having been the original source of the pandemic, the first region to exit lockdown and now the first to experience second, localised waves of infection.

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The World Health Organisation (WHO) has reaffirmed that past pandemics have been characterised by waves of activity spread over a period of months, with Beijing one of the first to experience a second spike and a series of local lockdown measures.

This has impacted dramatically on growth forecasts in Asia, while casting doubt on the long-term potential for recovery.

But what has been done so far, and how else can nations look to recover post the first wave of Covid-19 infections?

The Impact of Coronavirus and the Response so Far

 As the initial wave of infections and the peak of the virus has passed, attention has turned to the widespread social-economic impact of the outbreak.

To this end, the International Monetary Fund (IMF) has forecast that total growth in Asia will stall at zero percent in 2020, with this representing the region’s worst economic performance in more than 60 years.

China remains the poster boy for this decline, with this nation’s growth declining from 6.1% in 2019 to a projected low of just 1.2% this year.

However, the initial response by China and other Asian nations has been swift and largely effective, with a raft of countries introducing various quantitative easing measures and economic stimulus packages.

This is best embodied by the efforts of economically liberated nations such as South Korea, which has formulated a cumulative stimulus package worth 270 trillion won ($221.8 billion) in response to the coronavirus outbreak. This is equivalent to approximately 14% of South Korea’s GDP, while its main focus is to support jobs and safeguard those who have lost their income stream.