In its latest economic growth outlook report, the Asian Development Bank (ADB) trimmed its 2020 growth forecast for developing Asia from 2.2% to 0.1%.
Additional details
“The growth forecast downgrade reflects the impact of the lockdowns on economic activity "
“Keeps its economic growth forecast for developing Asia for next year at 6.2%.”
“Cuts China's 2020 growth forecast to 1.8% from 2.3%.”
“Sees China’s 2021 growth at 7.4%.”
“Coronavirus measures are causing a freeze in domestic demand and the shuttering of businesses.”
FX implications
The economic forecasts downgrade from various agencies is already factored in by markets, in light of the coronavirus pandemic.
The Asian traders, therefore, pay little heed to the above report, as the market mood remains tepid. AUD/USD is off the lows and ranges around mid-0.6800s while USD/JPY keeps losses around 106.80. The S&P 500 futures are down over 1.17%.
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