IMF warns of a weaker economic recovery in Southeast Asia as Covid restrictions linger

IMF warns of a weaker economic recovery in Southeast Asia as Covid restrictions linger

SINGAPORE “” The International Monetary Fund downgraded its forecasts for several Southeast Asian economies even as it turned more optimistic about the global economy and Asia-Pacific more broadly.The IMF expects the five largest developing economies in Southeast Asia to collectively grow by 4.9% in 2021, down from its previous projection of 5.2%. Those five economies are Indonesia, Malaysia, the Philippines, Thailand and Vietnam.Jonathan Ostry, IMF's deputy director of the Asia and Pacific department, said on Wednesday that an increase in Covid cases and renewed lockdowns are dampening the economic prospects of some Southeast Asian countries."We are concerned both about the outlook for tourism, when those markets will reopen, and the additional lockdowns and continued measures that the disease's unexpected turn in some of those countries is creating," Ostry told CNBC's "Squawk Box Asia."

Indonesia, Malaysia and the Philippines are among those that had to tighten some restrictions this year following a surge in Covid cases. Vaccination in those countries is also progressing at a slower pace compared with many nations globally.Statistics compiled by Our World in Data showed that 3.76% of people in Indonesia have received at least one dose of a Covid vaccine “” lower than the global level of