BM3001: The East Asia and Pacific regional economy slowed to an estimated 0.9% last year: Introduction to Economics Assignment, DIC, Singapore

ASSIGNMENT BRIEF

CASE/ SCENARIO

Recent developments:

The East Asia and Pacific regional economy slowed to an estimated 0.9% last year. The severity of the COVID-19 pandemic shock was uneven, however. In China and Vietnam, which effectively controlled the spread of the virus, GDP is estimated to have expanded by 2% and 2.8% respectively. Activity has been supported by a resumption of production and exports, with additional boosts from stimulus-fueled public investment.

The rest of the region suffered significant output losses. The economies that suffered the worst declines were those with extended periods of lockdown combined with large domestic outbreaks (the Philippines) or domestic policy uncertainty (Malaysia, Thailand, Timor-Leste), and those with a heavy reliance on tourism and travel (Fiji, Thailand, Palau, Vanuatu).

Restrictions on economic activity to stem the pandemic have largely eased across the region and goods exports have started to recover. Although the spread of the pandemic appears to have slowed in much of East Asia and Pacific, new infections remain high in Indonesia and the Philippines and have increased recently in Malaysia and Myanmar.

Outlook: Growth in the region is projected to accelerate to 7.4% in 2021, led by a rebound in China. This is predicated on the rollout of an effective vaccine in the first quarter of 2021 in major economies and later in smaller emerging market and developing economies.

Nevertheless, economic activity in the region is expected to remain below pre-pandemic trend by late 2021, reflecting lasting damage from the COVID-19 shock. Investment and productivity are expected to remain depressed and uncertainty is likely to remain elevated.

Risks: Risks to the outlook are tilted to the downside. The pandemic could last
longer than expected, the longterm damage from last year’s recessions could be deeper than anticipated, balance sheet stress could intensify, or the contraction in global trade could be sharper or longer lasting than envisioned. More countries in the region could experience difficulties with procurement and distribution of the vaccine than currently anticipated.

Although the region entered the pandemic with relatively robust monetary and fiscal policy frameworks, most countries are expected to face substantial deteriorations in fiscal positions and elevated debt. Elevated debt levels may weigh on activity if deleveraging pressures prompt authorities to tighten policy prematurely. On the upside, the rapid deployment of an effective vaccine could trigger a stronger-than-expected rebound in major economies and in global demand

Global Economy Prospects: East Asia and Pacific (2021). Available at
http://pubdocs.worldbank.org/en/693711599838723416/Global-EconomicProspects-January-2021-Regional-Overview-EAP.pdf.

Accessed 1 February 2021) As a student of Foundation Diploma in Business developing a sound knowledge and understanding of the economy is critical and in this regard, you are required to carryout a concise analysis using the databases of the organisation(s), library, eresources, annual reports, journal articles, newspapers and case studies of economy and its impact on a selected industry, organisation and product.

Select an industry, an organisation, and the product(s) and all your answers must be based on that organisational business context. Based on your study and analysis, prepare and submit a report covering the following tasks. The report must be 2000 words length and follow the guidelines stipulated in the
assignment brief.

TASKS
1. Identify different types of market structures and discuss the market structure of the selected industry.

2. Evaluate macroeconomic variables and illustrate how these macroeconomic variables impact the selected industry and organization.

3. Analyse factors that may cause a shift in the supply and demand curve for the chosen product.

4. Review how the fiscal and monetary policies are used to address the
economic issues and their impact on the selected organization.