Uncertainty Casts Sand in Gears of Asia’s Consumer Recovery

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Uncertainty Casts Sand in Gears of Asia’s Consumer Recovery

One important aspect of Asia’s rebound from the virus shock is how fast consumers spring back after declines last year that were deeper than overall gross domestic product contractions in many economies across the region. Analysis by Bloomberg Economics suggests it won’t be an easy recovery: When the pandemic hit, the heaviest blow landed on consumption, with social distancing measures restricting spending and lost incomes hurting purchasing power. But heightened uncertainty is a less appreciated and more fraught factor behind the recoil: The role of income and uncertainty -- closely associated with a recovery in the job market -- means that a full recovery in consumption could take considerable time.

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