About Asia Pacific Timely™ aggregates news on the Business, Science, Technolgoy and the Ecomic outlook of the the region. In association with AsiaNewswire.Net, Asia Pacific Timely™ publishes and distributes press release to media in the APAC countries. For press release distribution to media outlets, contact us on through these messaging apps: WhatsApp, Skype or Telegram.

About APAC Economic Outlook.

APAC, or Asia-Pacific, is a broad region that encompasses countries and territories in Asia and Oceania, as well as parts of the Americas. The exact definition and composition of APAC may vary depending on the context and source, but it generally includes some of the world’s most populous and dynamic economies, such as China, India, Japan, Australia, and Indonesia1. According to the International Monetary Fund (IMF), APAC accounted for about 40% of the global GDP and 60% of the global growth in 2019¹.

The economic outlook for APAC in 2021 and beyond is cautiously optimistic, as the region recovers from the impact of the COVID-19 pandemic, which caused a sharp contraction of 1.3% in 20202. The IMF projected that the region’s GDP to grow by 7.6% in 2021 and 5.4% in 2022, outpacing the global average of 6% and 4.9%, respectively. However, the recovery is expected to be uneven and uncertain across countries, depending on the pace and effectiveness of vaccination, the degree and duration of policy support, and the speed and quality of structural reforms³.

The main drivers of the APAC recovery are the strong domestic demand and the robust external demand for goods, especially from advanced economies. China, which was the first country to contain the virus and reopen its economy, is leading the regional rebound, with an estimated growth of 8.4% in 2021 and 5.6% in 20223. India, which suffered a severe second wave of infections in early 2021, was expected to bounce back strongly, with a growth of 9.5% in 2021 and 8.5% in 2022

Other emerging and developing economies in the region, such as Indonesia, Malaysia, Philippines, Thailand, and Vietnam, were also projected to resume positive growth in 2021 and 2022, albeit at a slower and more varied pace than before the pandemic.

The main challenges and risks facing the APAC outlook include the potential resurgence of the virus and its variants, the slow and unequal access to vaccines, the tightening of global financial conditions, the escalation of geopolitical and trade tensions, and the persistence of domestic vulnerabilities and inequalities 4. To overcome these challenges and foster a more resilient and inclusive growth, APAC countries need to pursue a comprehensive policy agenda that includes the following elements:

• Strengthening the health system and expanding the coverage and effectiveness of vaccination.
• Providing targeted and timely fiscal and monetary support to protect the most affected sectors and groups, while preserving fiscal and debt sustainability and financial stability.
• Enhancing regional cooperation and integration, especially in trade, investment, energy, transport, and digital connectivity.
• Accelerating structural reforms to improve the business environment, governance, transparency, competition, and diversification.
• Investing in human capital, social protection, and green infrastructure to reduce poverty, inequality, and environmental degradation.

In conclusion, APAC is a region of both opportunities and challenges in the post-pandemic era. The region’s economic outlook depends largely on how it can cope with the health crisis, support the recovery, and implement the reforms. If APAC can overcome its obstacles and seize its opportunities, it can achieve a more prosperous, sustainable, and dynamic future.