The global economy plunged into recession as the COVID-19 pandemic swept the planet. While Asia was unable to escape the negative shocks of the pandemic and the ongoing US-China trade war, it has performed well compared to other regions, with economic activity forecast to contract by only 1.3% this year, according to a recent report by Atradius.
The region is well-positioned to bounce back given its successful containment measures, as well as firm fiscal and monetary policies, with GDP expected to rebound by about 6.5% in 2021.
“Asia’s resilience will drive promising growth prospects that outshine other markets in 2021”, said Atradius senior economist Bert Burger. “The Chinese economy, which experienced its first quarter-on-quarter GDP contraction in decades, is gradually recovering, as did many Asian countries. A gradual decoupling of the Chinese economy from the US and other western countries will have varying implications for Asia’s growth prospects. As companies adjust to the post-pandemic world, the diversification and relocation of supply chains out of China will inevitably benefit several countries in the region.”