International credit rating agency Moody’s has adjusted its South Korean economic growth forecast for this year from 2.1 percent to 1.9 percent in view of the impact of Covid-19. The agency lowered its estimate for China as well.
“The spread of Covid-19 in China and its impact on the Chinese economy are likely to adversely affect Asia-Pacific countries’ production activities, tourism industries, etc.,” it said in its report released on Feb. 16, adding, “South Korea’s GDP growth rate is estimated to fall from 2.1 percent to 1.9 percent.”
In addition, the agency cut its forecast for China from 5.8 percent to 5.2 percent when it comes to this year’s GDP growth. For next year, it maintained the previous estimate of 5.7 percent.
The global GDP growth estimate for this year has been lowered by 0.2 percent point. In the case of G20, the estimates for this year and next year are 2.4 percent and 2.8 percent, respectively. Japan’s growth estimate for this year has been lowered from 0.4 percent to 0.3 percent.