Turning to Asia, the real GDP growth surge in east Asia (which includes the Pacific region) following the 1997-98 Asian financial crisis lost steam during the period between 2011-21 in a largely cyclical downturn. With the onset of the COVID-19 pandemic, there was a sharp fall in fixed capital investment and labour supply, which still remain below pre-pandemic levels.
The weakening of human and physical capital will likely weigh on medium to long-term growth prospects of the region in an environment of reconfiguration of supply chains, elevated debt levels, tighter financing 3 UNCTAD, (2022) World Investment Report. 4  conditions and uncertainty related to trade and technology transfer.