While Asia witnessed a return to growth following the economic uncertainty of 2020, a number of factors such as supply chain bottlenecks, weak global demand and the persistence of Covid-19 somewhat hindered the region’s economic recovery in 2021.
- – Lockdowns and factory closures led to supply chain shortages
- – Economic difficulties in China weighed on overall demand
- – The region led the world in reopening to foreign tourists
- – Despite continued headwinds, most of the region expects a return to growth
As it did last year, the pandemic continued to affect Asia’s economic prospects significantly throughout 2021.
After a strong first half of the year, in which many countries recorded double-digit year-on-year growth, the spread of the Delta variant in the third quarter led to the implementation of lockdowns and travel restrictions across the region.
Malaysia, the Philippines, Singapore, Thailand and Vietnam were among those that experienced some form of lockdown throughout the year, as governments attempted to halt the spread of the virus.
This led to the closure of factories in key manufacturing countries, severely hampering the region’s industrial output.
Although certain exemptions were made – in Malaysia, for instance, electronics companies were allowed to operate at 60% capacity and automakers at 10% – the disruptions created…
