COVID-19 in Emerging Asia: Regional socio-economic implications and policy priorities

Abstract

The rapid spread of Covid-19 has been affecting economic and social conditions in Emerging Asia. Economic growth, which was already weakening before the outbreak, is facing significant pressure and may weaken further. A sharp decline in regional economic growth is expected in 2020. The pandemic will likely affect financial markets and the banking sector, as well as weaken trade flows. Impacts on firms and the labour market are already apparent. Immediate healthcare responses and lockdown measures have been trying to curb spread of the virus. Timely policy responses in health and labour markets, combined with appropriate monetary and fiscal policies, will be critical. Further assessment of the economic implications of lockdown and curfew measures will be needed. Addressing medium-term challenges, including maximising the use of digitalisation and further strengthening regional co-operation, is also important.