Citi slashes Asean GDP growth forecast to 2.9%, down from 4.3%

CITI Research economists have slashed their 2020 economic growth forecast for Asean to 2.9 per cent, down from a January prediction of 4.3 per cent, as the Covid-19 outbreak reaches an "inflection point" in South-east Asia.

This reflects further extended drag on tourism; weaker domestic demand from both social distancing measures and the "fear factor"; transitory supply shocks and a drop in external demand for exports as the virus spreads to developed markets, Citi said in a report on Thursday.

The assessment is made following an "exponential jump" in new cases in Asean since March 14, Citi said. Malaysia now tops the number of cases within Asean at 900, of which more than half are linked to a mass religious event two weeks prior that saw more than 15,000 attendees from Malaysia and abroad.