South Asia Economic Focus | Fall 2022
Coping with Shocks
Migration and the Road to Resilience
In short order, a series of once-in-a-lifetime shocks has hit South Asia. Elevated inflation, balance of payments pressures, a slowdown in the global economy, and monetary tightening in other countries present renewed challenges, while the scars from the COVID pandemic continue to weigh down on the economic recovery. The region is facing a sharp inflection point around mid-2022 when growth is expected to slow, though the more services-led economies are expected to perform better. To build resilience, the region can tap into the ongoing structural changes including financial innovations and increased labor market flexibility.
Labor migration, a key part of life in South Asia and an important coping mechanism, was adversely impacted during the COVID pandemic. Policies that address existing barriers and reduce the risk of migration can improve the region’s resilience. This issue of the South Asia Economic Focus describes recent economic developments, analyzes the economic impact of the internal and external shocks, presents growth forecasts, provides risk scenarios, examines the impact of COVID on migration, and discusses policy recommendations.
Unprecedented shocks rattle South Asia, exacerbating challenges and dampening growth. Watch this video to find out how migration can help South Asia build resilience and cope better with future shocks.
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