Demand and Supply Dynamics in East Asia During the COVID-19 Recession

The COVID-19 (coronavirus) pandemic has devastated lives and damaged economies, requiring strong and decisive policy responses from governments. Developing the optimal short-term and long-term policy response to the pandemic requires understanding...

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Main Authors:	Islamaj, Ergys, Ruch, Franz Ulrich, Vashakmadze, Eka
Format:	Brief
Language:	English
Published:	World Bank, Malaysia 2021
Subjects:	CORONAVIRUS COVID-19 PANDEMIC IMPACT SUPPLY CHAIN DEMAND SHOCK GLOBAL VALUE CHAIN SUPPLY SHOCK
Online Access:	http://documents.worldbank.org/curated/en/101421621605010835/Demand-and-Supply-Dynamics-in-East-Asia-During-the-COVID-19-Recession http://hdl.handle.net/10986/35671

id	okr-10986-35671
recordtype	oai_dc
spelling	okr-10986-356712021-06-05T05:10:44Z Demand and Supply Dynamics in East Asia During the COVID-19 Recession Islamaj, Ergys Ruch, Franz Ulrich Vashakmadze, Eka CORONAVIRUS COVID-19 PANDEMIC IMPACT SUPPLY CHAIN DEMAND SHOCK GLOBAL VALUE CHAIN SUPPLY SHOCK The COVID-19 (coronavirus) pandemic has devastated lives and damaged economies, requiring strong and decisive policy responses from governments. Developing the optimal short-term and long-term policy response to the pandemic requires understanding the demand and supply factors that drive economic growth. The appropriate policy response will depend on the size and duration of demand and supply shocks. This Research & Policy Brief provides a decomposition of demand and supply dynamics at the macroeconomic level for the large developing economies of East Asia. The findings suggest that both demand and supply shocks were important drivers of output fluctuations during the first year of the pandemic. The demand shocks created an environment of deficient demand - reflected in large negative output gaps even after the unprecedented policy response - which is expected to last through 2021. The extant deficient demand is suggestive of continued need to support the economic recovery. Its size should guide policy makers in calibrating responses to ensure that recovery is entrenched, and that short-term supply disruptions do not lead to long-term declines in potential growth. 2021-06-04T14:41:19Z 2021-06-04T14:41:19Z 2021-05-24 Brief http://documents.worldbank.org/curated/en/101421621605010835/Demand-and-Supply-Dynamics-in-East-Asia-During-the-COVID-19-Recession http://hdl.handle.net/10986/35671 English Research and Policy Brief;No. 47 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Malaysia Publications & Research Publications & Research :: Brief East Asia and Pacific East Asia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CORONAVIRUS COVID-19 PANDEMIC IMPACT SUPPLY CHAIN DEMAND SHOCK GLOBAL VALUE CHAIN SUPPLY SHOCK
spellingShingle	CORONAVIRUS COVID-19 PANDEMIC IMPACT SUPPLY CHAIN DEMAND SHOCK GLOBAL VALUE CHAIN SUPPLY SHOCK Islamaj, Ergys Ruch, Franz Ulrich Vashakmadze, Eka Demand and Supply Dynamics in East Asia During the COVID-19 Recession
geographic_facet	East Asia and Pacific East Asia
relation	Research and Policy Brief;No. 47
description	The COVID-19 (coronavirus) pandemic has devastated lives and damaged economies, requiring strong and decisive policy responses from governments. Developing the optimal short-term and long-term policy response to the pandemic requires understanding the demand and supply factors that drive economic growth. The appropriate policy response will depend on the size and duration of demand and supply shocks. This Research & Policy Brief provides a decomposition of demand and supply dynamics at the macroeconomic level for the large developing economies of East Asia. The findings suggest that both demand and supply shocks were important drivers of output fluctuations during the first year of the pandemic. The demand shocks created an environment of deficient demand - reflected in large negative output gaps even after the unprecedented policy response - which is expected to last through 2021. The extant deficient demand is suggestive of continued need to support the economic recovery. Its size should guide policy makers in calibrating responses to ensure that recovery is entrenched, and that short-term supply disruptions do not lead to long-term declines in potential growth.
format	Brief
author	Islamaj, Ergys Ruch, Franz Ulrich Vashakmadze, Eka
author_facet	Islamaj, Ergys Ruch, Franz Ulrich Vashakmadze, Eka
author_sort	Islamaj, Ergys
title	Demand and Supply Dynamics in East Asia During the COVID-19 Recession
title_short	Demand and Supply Dynamics in East Asia During the COVID-19 Recession
title_full	Demand and Supply Dynamics in East Asia During the COVID-19 Recession
title_fullStr	Demand and Supply Dynamics in East Asia During the COVID-19 Recession
title_full_unstemmed	Demand and Supply Dynamics in East Asia During the COVID-19 Recession
title_sort	demand and supply dynamics in east asia during the covid-19 recession
publisher	World Bank, Malaysia
publishDate	2021
url	http://documents.worldbank.org/curated/en/101421621605010835/Demand-and-Supply-Dynamics-in-East-Asia-During-the-COVID-19-Recession http://hdl.handle.net/10986/35671
_version_	1764483540033994752

Demand and Supply Dynamics in East Asia During the COVID-19 Recession

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