Asia and the Pacific

Initially, the effects of the economic crisis were felt more slowly in Asia and the Pacific than some other regions, but as the fallout moved beyond the financial sector and into the global economy its impact became unavoidable. Three channels in particular have left the region vulnerable; the dependency on trade and exports, the decline in capital inflows and Foreign Direct Investment, and the fall in remittances generated by millions of overseas migrant workers.
The consequences are being felt not only as a rise in unemployment. Just as concerning are the expansion in the informal economy – where workers have little or no social protection – and the rise in poverty, as many millions of people who had been released from poverty by economic growth risk falling back. Women, young people, and unskilled migrant workers are among those who are particularly vulnerable, and whose situation requires specific attention from policy makers.