Asian Development Outlook (ADO) Series- Asian Development Outlook (ADO) 2022 Mobilizing Taxes for Development
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- 9789292694562
- 30 augustus 2022
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Outlines economic prospects in developing Asia amid global turbulence and lingering pandemic risks. The report discusses the implications of school closures and the invasion of Ukraine, and explores mobilizing taxes for development.
This report outlines economic prospects in developing Asia amid global turbulence and lingering pandemic risks. It discusses the implications of school closures and the invasion of Ukraine, and explores mobilizing taxes for development.
Developing Asia's outlook remains positive, with growth of 5.2% expected in 2022 and 5.3% in 2023. Downside risks include spillover from geopolitical tensions, such as via higher-than-expected commodity prices. The Russian invasion of Ukraine has upended the global economic outlook and greatly amplified uncertainty for a world economy still contending with COVID-19. Aggressive monetary policy tightening in the United States could lead to financial instability. In the medium term, scarring from the pandemic poses significant risks, including learning losses from continued school closures that could worsen economic inequality.
The region's economies urgently need to mobilize fiscal resources to restore the health of public finances and build a more inclusive and sustainable future. Opportunities to strengthen revenue will depend on specific circumstances, but more efficient value-added tax and better-optimized tax incentives hold promise for many economies. Strengthening personal income and property taxes can raise additional revenue and make tax systems more progressive. Significant opportunities exist to expand the use of tax and other fiscal instruments to tackle environmental and health priorities while raising revenue.
This report outlines economic prospects in developing Asia amid global turbulence and lingering pandemic risks. It discusses the implications of school closures and the invasion of Ukraine, and explores mobilizing taxes for development.
Developing Asia's outlook remains positive, with growth of 5.2% expected in 2022 and 5.3% in 2023. Downside risks include spillover from geopolitical tensions, such as via higher-than-expected commodity prices. The Russian invasion of Ukraine has upended the global economic outlook and greatly amplified uncertainty for a world economy still contending with COVID-19. Aggressive monetary policy tightening in the United States could lead to financial instability. In the medium term, scarring from the pandemic poses significant risks, including learning losses from continued school closures that could worsen economic inequality.
The region's economies urgently need to mobilize fiscal resources to restore the health of public finances and build a more inclusive and sustainable future. Opportunities to strengthen revenue will depend on specific circumstances, but more efficient value-added tax and better-optimized tax incentives hold promise for many economies. Strengthening personal income and property taxes can raise additional revenue and make tax systems more progressive. Significant opportunities exist to expand the use of tax and other fiscal instruments to tackle environmental and health priorities while raising revenue.
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