Inequality had already been rising in Asia, and research shows how past pandemics led to higher income inequality and hurt employment prospects of those with limited education. 4. Weak balance sheets and geopolitical tensions. Weakened household and corporate balance sheets in many Asian countries can weigh negatively on investor sentiment and amplify the effect of increasing uncertainties associated with geopolitical tensions.
While great progress has already been made in terms of liberalising trade and the foreign exchange market and in the privatisation of business enterprises, prime consideration must be given to economic competitiveness.