Under-Utilized Capacity of Resources, Rising Unemployment and Low House Hold Savings: Bottleneck to South Asia’s Growth

4 Pages Posted: 7 Oct 2019

Date Written: October 4, 2019

Abstract

Nine major world economies and few South Asian economies are slowing. South-east Asia is more vulnerable to economic downturn than it was during the global financial crisis one decade ago, according to analysts at global management consultancy Bain & Co. Greater exposure to a slowing China - and other structural economic shifts - have left most ASEAN markets in a more perilous position than before, according to a report released in September 2019. Bain partner Thomas Olsen, who co-authored the report, told The Business Times over the phone that the next downturn will likely be broad-based and not limited to an acute financial crash, as it is set to be "more typical economic correction at the end of a cycle". Heather Long argues that many of the countries slowing down or in recession have a common problem, that they are heavily dependent on selling goods overseas. And this is not a good time to have an export-driven economy. India’s GDP growth in first quarter in fiscal 2019-20 was reported 5%, lowest in past six years. This paper attempts to investigate the most critical factors that impede the growth. We noticed that under-utilization of resources is very common in emerging economies.The objective is to suggest emerging South Asian economies the most pressing policy measures that can boost economy by optimum utilization of resources.

Keywords: Slowing Economies, Under Utilization of Capacity, Saving, Export, Unemployment

JEL Classification: A00, G00

Suggested Citation

Sapovadia, Vrajlal K., Under-Utilized Capacity of Resources, Rising Unemployment and Low House Hold Savings: Bottleneck to South Asia’s Growth (October 4, 2019). Available at SSRN: https://ssrn.com/abstract=3464708 or http://dx.doi.org/10.2139/ssrn.3464708

Vrajlal K. Sapovadia (Contact Author)

Shanti Business School (SBS) ( email )

Opp. Vral Gardens, Off S. P. Ring Road
Shela
Ahmedabad, Gujarat 380058
India

HOME PAGE: http://www.shantibschool.edu.in

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