The developing economies in Asia and the Pacific rebounded robustly in 2021 after a year of contraction triggered by the COVID-19 pandemic. The recovery remains nascent and uneven; economic growth is projected to be moderate in 2022 amid continuing uncertainty about the pandemic and the likely unwinding of fiscal and monetary support in view of macroeconomic stability concerns.
This year’s edition of the flagship Economic and Social Survey of Asia and the Pacific revisits macroeconomic and structural policies and lays out a road map for inclusive post-pandemic recovery and development – a “Building Forward Fairer” policy agenda. As developing countries in the region move ahead with learning to live with COVID-19, balancing the protection of public health and livelihoods, it is time to lay the foundations for a fairer future of equal opportunities and inclusive outcomes.
The survey recommends the continuation of targeted public expenditures amid likely fiscal consolidations that tend to increase inequality and calls for efficiency in fiscal spending. It shows that investments in health care, education and social protection significantly reduce inequality; however, there is much room for improvement in beneficiary targeting and spending efficiency. To ensure fiscal and debt sustainability, the survey also highlights the importance of enhancing domestic fiscal revenues in a fair manner.