Emerging Asia

China Coronavirus fears hit equity markets

The Great Lock-Down Is Ending In Emerging Asia As Growth Collapsed And Fiscal And Monetary Space Is Limited

Trinh Nguyen (Natixis) | After the Philippines reported a shocking decline of GDP of -16.5% YoY, Malaysia topped it off with GDP falling by -17.1% YoY. The deterioration is in line with other Southeast Asian economic weakness -Singapore fell -13.2% and Indonesia -5.3%, much worse than during the Great Financial Crisis (Vietnam is the only that has positive Q2 GDP growth in ASEAN). While some of it is due to external demand decline, the severity of economic contraction is self-imposed via suppression measures that crushed domestic economic activity.