Emerging Asia: Securing Solid Fundamentals For Post-Covid Future

Asia’s emerging economies are at different stages in combatting the Covid-19 pandemic. For some, the light at the end of the tunnel is getting brighter as social distancing measures are being eased and economic activity is starting to ramp up again. Others are still grappling with outbreaks and lockdowns.

- Matthew Lobner

Whatever stage they are at, though, these markets must also continue to think beyond the crisis, and about what can be done to safeguard and improve their long-term economic prospects.

Developing nations across Asia – Sri Lanka included – have of course not been immune to the social and economic disruption caused by COVID-19. Travel restrictions and distancing measures have hit trade and jobs around the globe.

Budget deficits have widened and overall levels of debt will continue to increase across much of the region. Any recovery in tourism and business and consumer confidence is likely to be overshadowed by lingering concerns about potential new outbreaks, and by the tough global economic backdrop.

Despite the near term challenges, it’s important to remember the underlying trends that underpin many developing nations’ long-term growth potential.

Most of the economies in emerging Asia are increasingly capable of delivering innovation and higher-end manufacturing and services. The emergence of numerous home-grown e-commerce, e-payments and other companies testifies to this. The COVID-19 fall-out could, if anything, boost the quest for new ideas and technologies, as households, companies and entrepreneurs seek out new ways of buying, selling, banking, learning and communicating with each other.