Many of the economies in the region began to bounce back in the second half of 2020 after an initial slump. However, among major economies of the region, only China and Vietnam have followed a V-shape recovery path with output surpassing pre-COVID-19 levels in 2020 (Figure O.1). Most of the other countries have not seen a full-fledged recovery in terms of either output or growth momentum. By the end of 2020, output in the four other major economies had rebounded but remained on average around 5 percent below pre-pandemic levels, with the smallest gap in Indonesia (2.2 percent) and the largest gap in the Philippines (8.4 percent). Economic contraction has been particularly severe and persistent in some of the small island economies, with output in 2020 remaining more than 10 percent below pre-pandemic levels in Fiji, Palau, and Vanuatu. Due to the economic distress, poverty in the region stopped declining for the first time in 20 years and 32 million people were prevented from escaping poverty.
