The economic recovery continues to gain momentum in South Asia amid contained COVID-19 infections and higher mobility, robust remittance inflows and broadly supportive macroeconomic policy stances. After an estimated expansion of 7.4 per cent in 2021, regional GDP is projected to expand at a more moderate pace of 5.9 per cent in 2022 as base effects gradually disappear.22 The recovery, however, is still fragile, uneven and subject to pandemic-related uncertainties and downside risks. A lagging labour market recovery illustrates the severe socioeconomic difficulties for large segments of the population. Achieving robust, sustained and inclusive growth will be critical in tackling the region’s recent rise in poverty and inequality, with the pandemic erasing years of progress on poverty reduction and an estimated 30 million more people in extreme poverty in 2020. […]