Economic and Social Impact of Global Financial Crisis: Implications for Macroeconomic and Development Policies in South Asia

The South Asian Countries In General Were Hit Hard By The Global Financial Crisis Which Came In The Wake Of An Unprecedented Increase In Oil And Food Prices. The Severity Of The Economic Downturn, However, Varied From Country To Country. The Regional Economies Experienced Sharp Slowdown In Economic Growth Coupled With Widening Current Account Deficits, Depreciating Currencies, And Falling Foreign Exchange Reserves. Pessimistic Projections For Global Economic Growth And World Trade Continue To Pose A Serious Risk To Growth And Development Prospects In The South Asian Economies. Sizable Segments Of Population In These Economies Are Poor And A Slowdown In Economic Growth Would Not Only Add To Their Miseries But Also Push Low-Income Households Into Poverty. With Public Finances Already Under Pressure, There May Be Limited Options To Provide Support To The Poor And The Vulnerable Groups. The Falling Living Standards May Also Trigger Protectionist Policies That Will Further Harm The Already Fragile Process Of Regional Economic Integration In South Asia Initiated Under The Aegis Of Saarc.