ENG102(Project Draft)

TOPIC: The effect of COVID 19 pandemic has had in the south Asian economy.

NAME : Md. Mahin Hossain

ID : 2330370

DATE : 17 AUGUST 2023

COURSE : ENG-102
The effect of COVID 19 pandemic has had in the south Asian economy.
The COVID-19 virus has greatly affected South Asia, which is home to nearly 2 billion
people. International measures such as quarantines, stay-at-home orders and business closures
have affected the economy, especially social activities, resulting in many job losses. This leads to
a decrease in spending on goods and services. In 2020, the region's economy is expected to
contract by 6.7% due to the severe epidemic and curfews, especially affecting countries such as
India, Bangladesh and Pakistan.(Khan, A.,& et al.2021) The challenge of supporting these
industries while dealing with public health remains an important task for the region.

The delayed arrival of COVID-19 in Bangladesh caught the country off-guard, affecting both its
healthcare and economy. The nation's reliance on globalized supply chains, especially in the
fashion industry and human resource exports, amplified the economic impact. Major
international brands canceling orders hit the ready-made garments sector hard.(Amit, S.2020)
Remittances from overseas workers dwindled due to travel restrictions and economic
slowdowns. Consumer spending decreased, especially in urban areas. Small businesses and
startups faced funding difficulties. The financial sector struggled with asset quality concerns.
Despite these challenges, the government's stimulus package aims to aid affected industries and
workers, providing hope for future recovery.

The COVID-19 pandemic caused India's GDP to contract by 23.9% in Q2 2020, followed by
disruptions in trade, 23.52% unemployment (April 2020), and market instability.(Basbshetti, V.,
Singh, J.,& Yaragol, P.2021) Forex reserves fluctuated, yet displayed recovery. The Rupee
depreciated to ₹6.9364/$ (Apr 2020). The pandemic's broader impacts encompassed healthcare
strain, extensive loss of life, and far-reaching societal challenges. These events exposed India's
economic and social vulnerabilities, underscoring the critical need for targeted policies to
navigate immediate obstacles, support recovery, and address ongoing public health concerns.

The COVID-19 pandemic had profound negative effects on Sri Lanka's economy. The country's
GDP growth rate turned negative in 2020 due to disruptions in key sectors like tourism,
manufacturing, and agriculture.(Islam, M.,& et al.2020) Travel restrictions severely impacted the
tourism industry, causing its collapse. Remittances from overseas workers declined, affecting
income levels. The informal sector experienced job losses and reduced earnings. To counter the
impact, the government introduced stimulus packages, credit support, and loan moratoriums.
However, fiscal strain and global economic uncertainty posed additional challenges. Sri Lanka's
recovery depended on managing the health crisis, implementing targeted policies, and adapting
to changing global conditions. It's important to note that this information is based on data
available up to November 2020.
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The COVID-19 pandemic severely impacted Pakistan's already fragile economy, hindering its
recovery process. The outbreak led to a significant economic downturn, causing a loss of
approximately 12.3 million jobs and resulting in a drastic decline in GDP growth from 5.8% in
2018 to 0.98%. The fiscal deficit soared to 10.0%, while revenues dwindled over two
years.(Wang, C.,& et al.2021) The imposed lockdowns, while effective in curbing the virus,
exacerbated economic challenges, causing around 5 million job losses and worsening living
conditions. Pakistan's case fatality rate of 2.12% was lower than the global average. Striking a
balance between health measures and economic revival proved complex, emphasizing the
urgency of targeted policies for recovery.

In summation, the COVID-19 pandemic exerted significant adverse effects on the economies of
South Asian countries. The implementation of restrictive measures like lockdowns and
quarantine protocols led to profound economic repercussions, particularly characterized by
widespread job losses and a contraction in economic output. The region witnessed a substantial
economic decline of approximately 6.7% in 2020, notably impacting countries such as India,
Bangladesh, and Pakistan. Bangladesh faced supply chain disruptions, particularly affecting key
sectors like fashion and exports. India encountered a sharp 23.9% decline in its GDP,
accompanied by unemployment surges and market instability. Similarly, Sri Lanka experienced a
negative GDP growth rate attributed to the disruption of vital sectors, including tourism and
remittances. Pakistan's economy, which was already vulnerable, suffered a substantial setback
with job losses and diminished GDP growth. These situations underscore the complexity of
balancing public health and economic stability, necessitating well-targeted and adaptive policy
responses for long-term recovery in the South Asian context. [ 656: words ]

Reference:

Khan, A.,& et al.(2021). Economic and financial impact of the COVID-19 pandemic in South
Asia. Environmental Science and Pollution Research. Volume 29.
(Economic and financial impact of the COVID-19 pandemic in South Asia | SpringerLink)

Amit, S.(2020). Coronavirus and Impact on the Bangladesh Economy: Assessing the Damage of
the Black Swan of 2020. The Asia-Pacific. Volume 18.
(Coronavirus and Impact on the Bangladesh Economy: Assessing the Damage of the Black Swan
of 2020 | The Asia-Pacific Journal: Japan Focus (apjjf.org))

Basbshetti, V., Singh, J.,& Yaragol, P.(2021). The Impact of COVID-19 on the Socio-economic
Indicators of the Selected Asian Countries. India Quarterly: A Journal of International Affairs.
Volume 78.
(The Impact of COVID-19 on the Socio-economic Indicators of the Selected Asian Countries -
Vaijanath Babshetti, Jyothi E. Singh, Prakash B. Yaragol, 2022 (sagepub.com))
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Islam, M.,& et al.(2020). Potential Economic Impacts of the COVID-19 Pandemic on South
Asian Economies: A Review. Volume 1.
(World | Free Full-Text | Potential Economic Impacts of the COVID-19 Pandemic on South
Asian Economies: A Review (mdpi.com))

Wang, C.,& et al.(2021). Global Financial Crisis, Smart Lockdown Strategies, and the COVID-
19 Spillover Impacts: A Global Perspective Implications From Southeast Asia. Original
Research. Volume 12.
(https://www.frontiersin.org/articles/10.3389/fpsyt.2021.643783/full)

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