Abstract
The global economic recovery is facing a major challenge amid pressures such as new divergent waves of covid-19 disease outbreaks, continuing labor force challenges, persistent supply chain challenges and rising inflation. South Asian countries have maintained the pace of their economic recovery amid robust remittances and broadly supportive policy stances. Estimated at 7.4 percent in 2021, Asia's GDP is expected to expand at an average pace of 5.9 percent in 2022. However, South Asia's economic recovery is still weak and uneven. Fiscal policy remains highly restrictive, making it more challenging to a sustained recovery in economic activity and increase employment. As far as India is concerned, economic recovery is on a solid path amid a rapid vaccine easing social restrictions and supportive fiscal stance.
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