Top Economic Impacts of the Latest Outbreak in Asia

As Covid-19 cases continue to sharply rise, major Asian economies such as South Korea, Japan, Taiwan, and India are battling a resurgence worse than what was witnessed during the pandemic, which is resulting in travel restrictions to control and reduce the surge. Japan’s trade deficit has recently increased due to a drop in exports to China, causing a direct hit to the automobile, electronics, and general machinery sectors. Additionally, the pharmaceutical industry in India is also heavily impacted as there is a major dependency on China for critical APIs that has led to potential shortages and subsequent price hikes. South Korea’s economy has also taken a hit as the recent decline in chip production and reduced demand has impacted its trade balance. With the latest spike in cases continuing to impact key industries in top Asian economies, the big question on everyone’s mind is, what will be the region’s economic impact and outlook?