Economic growth for 2021 is forecasted by the Asian Development Bank (ADB) to expand by 7.1% in its September 2021 Asian Development Outlook Update for developing Asia, albeit with some cross-regional heterogeneity, while tourism-dependent Pacific island economies are forecasted to experience a further contraction in growth in 2021.
Many developing Asian economies have been able to capitalize on rising global demand during 2021, particularly from advanced economies.
These developments have also been underpinned by effective fiscal and monetary policy responses to the pandemic in the region, which have helped to stabilize financial markets. “However, the positive effects are weighed against country-specific factors related to the slow deployment of the vaccine and renewed waves of COVID-19 infections. “
The economic impact of the COVID-19 pandemic in Asia highlights the importance of entrenching longer-term sustainability and economic resilience into the recovery process, says the new Asian Development Bank (ADBI) edited book, COVID-19 Impacts and Policy Options: An Asian Perspective.
The macroeconomic effects of the pandemic, as well as the impact on firms and households in Asia, are featured in this book.
The book also advocates a future direction of policy on competitiveness and productivity gains underpinned by further enhancement of the digital economy in the region and a policy agenda focused on sustainable development.
The pandemic abruptly reduced economic activity in Asia, with consumption and investment falling due to domestic lockdowns and the global recession and economic growth contracting in 2020 in all Asian regions apart from East Asia.
Going forward, while the deployment of effective vaccines will bolster the progression to a post-pandemic era, the policy agenda needs to place longer-term sustainability and resilience at the core, supported also by fiscal reform.
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