Coronavirus: South Asia on course for worst economic slump in 40 years, World Bank says
- Widespread lockdowns in India and other regional economies freeze most normal activity
- Report warns entire region would experience an economic contraction this year
South Asia is on course for its worst economic performance in 40 years, with decades of progress in the battle against poverty at risk, because of coronavirus, the World Bank said Sunday.
India, Bangladesh, Pakistan, Afghanistan and other smaller nations, which have 1.8 billion people and some of the planet’s most densely populated cities, have so far reported relatively few coronavirus cases but experts fear they could be the next hotspots.
The dire economic effects are already much in evidence, with widespread lockdowns freezing most normal activity, Western factory orders cancelled and vast numbers of poor workers suddenly jobless.
“South Asia finds itself in a perfect storm of adverse effects. Tourism has dried up, supply chains have been disrupted, demand for garments has collapsed and consumer and investor sentiments have deteriorated,” said a World Bank report.
It slashed its growth forecast for the region this year to 1.8-2.8 per cent from its pre-pandemic projection of 6.3 per cent, with at least half the countries falling into “deep recession”.