The Impact of COVID-19 on the Rate of Growth in Economic Activity in South Asian Countries

Abstract

The research conducted to analyze the impact of COVID-19 pandemic on economic growth of South Asian economies. The research focused on four major south Asian economies includes Pakistan, India, Srilanka and Bangladesh. The COVID-19 is the pandemic for all economies and it has affected the growth, financial and economic conditions of all economies. During the COVID-19 period economic activity has been slow down, due to economic activity unemployment created and inflation has been increased. These Macroeconomic factors affects the position of investors and reduce the investments in financial markets thus this effect the stock market performance and trading has been decreased. The research conducted based on secondary data analysis of 2020 and 2021 monthly data indices taken of COVID-19 and macroeconomic variables of Pakistan, India, Srilanka and Bangladesh. The data analysis performed through E-views 9.5 Software and research analysis performed based on Unit root test, regression analysis and co-integration analysis to evaluate the comparative analysis between economic. The time series data analysis performed for each economy, unit root test analysis shows data is not stationary at level and researcher taken first difference of economic growth of each country to convert data in to stationary data. The regression analysis separately performed on all economies, this is evaluated the COVID-19 has significant impact on economic growth of each economy includes Pakistan, India, Srilanka and Bangladesh, due to COVID-19 the economic growth has been decreased over the period of time. The co-integration analysis performed to evaluate the long term relationship and researcher also found long term relationship of COVID-19 index and economic growth of various economies.