Overview

This report presents economic prospects for developing Asia and the Pacific. It includes analysis of the impacts of school closures caused by the pandemic and a theme chapter on financing a green and inclusive recovery. Growth in 2021 is forecast to be strongest in East and South Asia, and more moderate in Central and Southeast Asia and the Pacific. The main risks to the outlook are new virus outbreaks or delays in vaccine procurement and administration. Prolonged unemployment and disrupted education caused by the pandemic could have long-term consequences. To achieve green, resilient, and inclusive recovery, the region needs to mobilize huge sums of capital. Solid evidence associates green and social finance with positive impacts globally and in Asia. This edition's theme chapter on financing a green and inclusive recovery explores the drivers and impacts of green and social finance and its prospects in the region. Recently, financial gain has joined altruistic motives for investment, which bodes well for future expansion. Policies implemented through regulatory and fiscal measures can further accelerate the development of green and social finance.

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