World Bank has stated that the Maldivian economy will be hardest hit from all South Asian economies due to the worsening Covid-19 pandemic.

They stressed that the worst hit will be the Maldives where the collapse of tourism will result in gross domestic output contracting by as much as 13%, while Afghanistan could shrink by as much as 5.9% and Pakistan by up to 2.2%.

In the event of prolonged and broad national lockdowns, the report warned of a worst-case scenario in which the entire region would experience an economic contraction this year.

Other than India, the World Bank forecast that Sri Lanka, Nepal, Bhutan and Bangladesh will also see sharp falls in economic growth.

To minimise short-term economic pain, the Bank called for countries in the region to announce more fiscal and monetary steps to support unemployed migrant workers, as well as debt relief for businesses and individuals.

“The priority for all South Asian governments is to contain the virus spread and protect their people, especially the poorest who face considerable worse health and economic outcomes,” said senior World Bank official Hartwig Schafer.