Event Reports

KAS Japan Weekly COVID-19 Updates

by Cristita Marie Perez

Asia's stimulus packages

Governments across Asia are releasing massive stimulus packages as COVID-19 pushes economies into recession.

Key messages include:

 

1. Economic stimulus packages range from about 4% (Indonesia) to 20% (Japan) of a country's GDP.

 

2. Although necessary, these measures have downsides. For example, credit rating agencies have downgraded the outlooks for Malaysia, Indonesia and the Philippines.

 

3. Failure to effectively use the stimulus to mitigate the impact of COVID-19 can lead to increased borrowing costs, ballooning debt and further economic troubles.