South Asia is set to plunge into its worst-ever recession as the devastating impacts of COVID-19. World Bank forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7% in 2020, after topping 6 percent annually in the past five years. Regional growth is projected to rebound to 4.5% in 2021. In previous recessions, falling investment and exports led to a downturn. This time is different, as private consumption, traditionally the backbone of demand in South Asia and a core indicator of economic welfare, will decline by more than 10%, further spiking poverty rates.
South Asia is set to plunge into its worst-ever recession as the devastating impacts of COVID-19
Global IndexesOct 8, 2020