KUALA LUMPUR — Countries across East Asia and the Pacific face recession and rising poverty as economies grind to a halt due to the deadly coronavirus pandemic. In a report published on Tuesday, the World Bank warned that “significant economic pain seems unavoidable” across what was one of the world’s fastest-growing regions before the outbreak, which has killed almost 38,000 people worldwide. Though East Asia’s developing economies expanded at an estimated 5.8 per cent in 2019, some countries were already struggling with the knock-on effects of the China-United States trade war before the virus emerged in China in late 2019. Now, according to the bank, a possible 2.8 per cent region-wide contraction looms should a sustained pandemic force lengthy lockdowns and constrict business worldwide.
SINGAPORE — Two of the world’s most open and successful economies face tough times as the global downturn marks the end of one era and opens a new period of peril and possibility for both. Singapore and Ireland have staked their fortunes on being small, export-oriented, investor-friendly dynamos. Singapore was one of the original Asian Tiger economies, and the label passed to the Atlantic nation in the 1990s, as 15 years of 5 percent average growth earned Ireland its “Celtic Tiger” reputation. But as Kishore Mahbubani, a former Singapore diplomat and author of The New Asian Hemisphere – The Irresistible Shift of Power to the East, told The Washington Times, “being globalized has its downside – when the world economy stutters, the more open economies feel the pain first.” Both Singapore and Ireland are officially in recession, defined as two consecutive quarters of negative growth. Last week, U.S. computer giant Dell Inc. culled 2,000 jobs at its plant in Limerick in the west of Ireland, while Singapore’s Trade Ministry stated Jan. 2 that it expected the economy to contract 2 percent in 2009, the worst predicted performance of any Asian economy for the coming year.