- The COVID-19 pandemic has raised Asia’s debt burden and sharpened sustainability concerns, especially in countries were they had been already large and growing fast.
- Despite the pandemic, Asia’s debt seems sustainable, at least for now. Risks include shrinking fiscal space, mounting contingent liabilities, and aging population.
- The debt management policy to-do list is clear: build on successes in developing local bond markets, tackle long-pending reforms, and hedge risks.
- Asia’s public debt management is world-class, but its risk management is not.
Slowing growth and government responses to the COVID-19 pandemic have lifted debt levels globally, with developing Asia also caught up in this trend.
In the new book, The Sustainability of Asia’s Debt: Problems, Policies, and Practices, 24 renowned experts and practitioners explore the anatomy and dynamics of debt accumulation in Asia, a region whose financial stability matters to the entire world. This volume explains the role that borrowing has in the behavior of governments, corporations, and households. With its factual, analytical, and practical approach, the book provides rich lessons for researchers and policymakers through deep dives into subregional, country, and sector cases.
Join the panel of experts as they discuss the issues raised in the book, along with possible policy responses to ensure debt trends in Asia remain sustainable.
