Delta “Delta” -Stamma coronavirus and slow vaccination rates have collected the economy of the Asian region. Profit in Asia at the end of September, probably will fall for the first time in six quarters. The productivity of the factory in the south-east of the region in July decreased faster since June 2020. Reports about it Reuters.
Until recently, Asia’s economy was actively restored after last year’s recession. But because of the new wave of incidence of infection, the stores are again empty, and the factors are closed, and at the same time the prospects for the growth of corporate profits are reduced. Economic indicators on an annualized basis continue to demonstrate a stable recovery, especially in comparison with low figures of 2020, but the quarterly indicators demonstrate slowing down the dynamics. The head of the Ing Research Center in Singapore Rob Carnell is confident that the cause of everything is slow vaccination.
According to Reuters, in the third quarter of 2021, which will end in September, the largest Asian companies will record the first decline in profits for a year and a half – it will fall approximately 6.19 percent.
According to the main investment strategist Mitsubishi UFJ Morgan Stanley Securities in Tokyo Norijiro Fukhito, in the short term, much will depend on the rate of vaccination in Southeast Asia, the main production base of the region, and on whether China will take additional steps to support its support Economy.
In Southeast Asia, the increase in the number of cases of coronavirus and subsequent restrictive measures have been negatively affected both in the service sector and in the manufacturing sector. According to IHS Markit, the activity of factories in the region in July has decreased by the highest rates since last June.
The outbreak of coronavirus in Southeast Asia broke the supply chain for a number of the world’s largest manufacturers. Companies cannot receive auto parts and semiconductors produced in Thailand, Vietnam and Malaysia. Car sales in China, the second largest economy in the world, in July fell by 11.9 percent compared with the same month of 2020 against the background of a pandemic and global shortage of semiconductors.