In recent years, emerging market countries—in particular, those in Asia—have been among the global economy’s star performers. Even during bad times, such as during the Global Financial Crisis, Asian EMs have seen their economies hold up better than most others.
For much of the COVID crisis, that story held true. Many Asian economies, such as Vietnam, Singapore and Taiwan, seemed to have COVID under control, while Asian EMs appeared to have significant monetary and fiscal policy room to help address any economic impact of the crisis. In April 2021, the IMF’s projections for growth in the region were extremely bullish, with a recovery to 8.5 percent growth in emerging Asia this year and 6.0 percent in 2022. Two months later, expected growth had been downgraded, to a still-healthy 6.3 percent and 5.2 percent over the same two years (see Table). The ADB was even more optimistic in its July 2021 projections, pointing to growth of 7.2 percent and 5.4 percent this year and next.