Session 9: Fiscal Issues in Asia
Moderator:
Donghyun Park



Impact of COVID-19 on Debt Sustainability in South Asia

COVID-19 has impacted South Asia significantly and may change its growth trajectory in the coming years. With much slower economic growth and even contraction for some and rising fiscal deficits, public debt levels of several South Asian countries have soared threatening their sustainability. Macroeconomic fundamentals of many South Asian economies were already weak before the pandemic struck. This paper  conducts scenario analysis on the impact of COVID-19 on debt sustainability of South Asian economies and discusses policy implications in the post-COVID-19 world.

Author/s: 

Shalini Mittal and Lei Lei Song


JEL codes: H6, H63, F34