East & South Asia Economic Forecast

Economic Snapshot for East & South Asia

November 18, 2020

East Asia economic growth is seen accelerating markedly in 2021

Growth is seen accelerating markedly in 2021 as the regional economy shrugs off the effects of the pandemic and external demand rebounds. Ample fiscal and monetary stimulus in the region should further support the rebound, while a less volatile U.S. trade policy under a Biden administration bodes well for exports. Covid-19-related uncertainty clouds the outlook, however.

South Asia economic growth to expand in 2020

GDP in South Asia should expand robustly in 2021, as the impact of the pandemic on domestic activity across the region fades and a strong recovery in global demand boosts exports. Moreover, fiscal and monetary stimulus should remain accommodative, further supporting the rebound. That said, the evolution of the pandemic poses a downside risk to the outlook.

 

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