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Economic and Social Survey of Asia and the Pacific Report 2021

Posted on April 2, 2021 by admin1  626

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Recently, ‘Economic and Social Survey of Asia and the Pacific 2021:Towards post-Covid-19 resilient economies’ report was released by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

Key Findings of the report

  • The report forecasts that on average, developing Asia-Pacific economies are expected to grow 5.9 per cent in 2021 and 5 per cent in 2022, after having experienced an estimated contraction of 1 per cent in 2020.
  • The prospect of a K-shaped recovery, characterized by uneven post-pandemic recovery across countries and widened inequality gaps within countries, is highlighted as a primary policy challenge.

                                                   Image Courtesy: UNESCAP

K-shaped recovery

  • A K-shaped recovery is one in which the performance of different parts of the economy diverges like the arms of the letter “K.”.
  • Households at the top of the pyramid are likely to have seen their incomes largely protected, and savings rates forced up during the lockdown, increasing “fuel in the tank” to drive future consumption.
  • Meanwhile, households at the bottom are likely to have witnessed permanent hits to jobs and incomes.

                                                                    Image Courtesy: CNET
  • China’s swift and effective response to Covid enabled it to become the only major economy worldwide to achieve a positive annual economic growth rate in 2020.
  • India is estimated to record economic growth of 7 per cent in 2021-22, over a contraction of 7.7 per cent witnessed in the previous fiscal on account of the pandemic’s impact on normal business activity.
    • In its second advance estimates of national accounts, the National Statistical Office (NSO) has projected an 8 percent contraction in 2020-21, showing the impact of the pandemic.
  • India’s economic output in 2021 is expected to remain below the 2019 level.
  • A subsequent change in lockdown policies and success in reducing infection rates supported an impressive economic turnaround in the later months of 2020.
  • Challenges: Maintaining low borrowing costs while keeping non-performing loans in check would be a challenge.

                                                           Image Courtesy: UNESCAP

  • Suggestions:  For a more robust and inclusive recovery, the report calls for a more synchronised Covid vaccination programme across countries and highlights opportunities to leverage regional cooperation.
    • At the same time, it recommends that fiscal and monetary support should be sustained, as premature tightening could increase long-term scars.

About the Economic and Social Survey of Asia and the Pacific report

  • It has been produced annually since 1947 and is the oldest United Nations report on the region’s progress.
  • It is one of the longest, continuously running reports in the United Nations system, providing decision-makers in the region with valuable information informing development policy for decades.
  • It monitors regional progress, provides cutting-edge analyses and guides policy discussion on the current and emerging socio-economic issues and policy challenges to support inclusive and sustainable development in the region.

United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP)

  • It is a regional development arm of the United Nations for the Asia-Pacific region.
  • HQ & Establishment: Bangkok, Thailand & 1947.
  • Objective: To develop the institutional capacities of member and associate member governments in delivering effective policies for inclusive and sustainable development with special attention to least developed and landlocked developing countries as well as small island developing states.
  • Members: 53 Member States and 9 Associate Members from Asia-Pacific Region including India.

Source :IE

 
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