Under-Utilized Capacity of Resources, Rising Unemployment and Low House Hold Savings: Bottleneck to South Asia’s Growth

Abstract

Nine major world economies and few South Asian economies are slowing. South-east Asia is vulnerable to economic downturn than it was during the global financial crisis one decade ago, according to analysts at global management consultancy Bain & Co. Greater exposure to a slowing China - and other structural economic shifts - have left most ASEAN markets in a perilous position than before, according to a report released in September 2019. Bain partner Thomas Olsen, who co-authored the report, told The Business Times over the phone that the next downturn will likely be broad-based and not limited to an acute financial crash, as it is set to be more typical economic correction at the end of a cycle. Heather Long argues that many of the countries slowing down or in recession have a common problem, that they are heavily dependent on selling goods overseas. And this is not a good time to have an export-driven economy. India’s GDP growth in first quarter in fiscal 2019-20 was reported 5%, lowest in past six years. This paper attempts to investigate the most critical factors that impede the growth. We noticed that under-utilization of resources is very common in emerging economies.The objective is to suggest emerging South Asian economies the most pressing policy measures that can boost economy by optimum utilization of resources.