Moody’s Investors Service warned today that outbreak of China’s Wuhan coronavirus would pressure growth in Asia Pacific as a whole. “This shock comes on the back of a marked slowdown in 2019 as decelerating global trade hit the region,” The impact would be felt mainly through trade and tourism. Some sectors could also be hurt due to supply chain disruptions.
For China, Moody’s cut 2020 growth forecasts sharply from 5.8% to 5.2%. The downgrade reflects “a severe but short-lived economic impact, with knock-on effects for economies across the region.” Lower import demand is the primary reason for slowing growth.
