IMF says Asia's economy will shrink more in 2020 than it previously thought - CNBC

That's worse than the fund's June forecast for a 1.6% contraction, and stands in contrast to the IMF's decision to revise upward the projection for the global economy.

The IMF said the downgrade for Asia's economy "reflects a sharper contraction, notably in India, the Philippines, and Malaysia." It added that India and the Philippines experienced a "particularly sharp" drop in economic activity in the second quarter, "given the continued rise in virus cases and extended lockdowns.".

The fund upgraded its 2020 growth forecast for the Asian giant to 1.9% from its June projection of 1% because of "a faster-than-expected rebound in the second quarter.".

Next year, China's economic growth is expected to pick up to 8.2%, according to the fund's forecast.

and the euro area — will support Asia's growth, but the region's return to its full economic capacity will be "a long slog," said the IMF.