Revised Downward. We’ll be hearing those two words a lot over the next month as ratings agencies scramble to update their forecasts for countries and companies reeling from the historic impact of the Covid-19 pandemic.

The latest “revised downward” forecast from S&P Global Ratings hits South Korea. The global ratings agency is forecasting a 0.6% contraction in 2020 for South Korea, the world’s 12th largest economy.

S&P also sees economic contractions in Hong Kong, Singapore, and Japan, and a significant decline in expected output in China, as reported by Korea JoonAng Daily.

According to the report, S&P Global Ratings has “revised downward” their forecasts for the three countries plus Hong Kong listed above.

They are:

  • Hong Kong:  -1.7%
  • Singapore: -0.8%
  • Japan: -1.2%
  • China: +2.9%

China’s growth of less than 3% would represent a fall of more than 50% from the previous year. S&P Global also notes that the region will lose some $620 billion as a result of the pandemic.

“This loss will be distributed across sovereign, bank, corporate and household balance sheets,” it stated.

For the full piece in Korea JoonAng Daily, go here

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