Asia-Pacific has been one of the first regions to emerge from the Covid-19 pandemic, but the IMF fears the damage will leave deep scars on some economies that will take several years to heal.

National lockdowns and the stalling of business activity have amplified existing problems in certain countries: worsening inequality, adding to unemployment and exposing gaps in social welfare. For the region’s companies, however, a higher debt burden and a reduction in the earnings to service it, pose a more immediate threat.