The global economic recovery is facing a major challenge amid pressures such as new divergent waves of covid-19 disease outbreaks, continuing labor force challenges, persistent supply chain challenges and rising inflation. South Asian countries have maintained the pace of their economic recovery amid robust remittances and broadly supportive policy stances. Estimated at 7.4 percent in 2021, Asia's GDP is expected to expand at an average pace of 5.9 percent in 2022. However, South Asia's economic recovery is still weak and uneven. Fiscal policy remains highly restrictive, making it more challenging to a sustained recovery in economic activity and increase employment. As far as India is concerned, economic recovery is on a solid path amid a rapid vaccine easing social restrictions and supportive fiscal stance. India's GDP is expected to expand to 6.7 percent in 2022 after expanding by 9 percent in 2021. Pakistan economic growth is also travelling with moderate strength. The country's GDP is projected to expand to 3.9 percent in 2022 after expanding to 4.5 percent in 2021. Pakistan's economy is driven by private consumption, high remittances and fiscal support. The uncertainties and risks imposed by the pandemic have hit South Asian countries the hardest. Countries with low vaccination rates were particularly affected more. And global monetary pressures have increased volatility. This may trigger capital outflows and increase credit growth, especially the impact is greater in countries with high debt and large financing needs. This chapter has been prepared with theoretical data sourced throughout. All data were collected from popular dailies, standard websites, economic articles, books and economic reports. Various macro economic factors such as GDP, Inflation, Employment, External Debts, Imports and Exports are examined in this chapter. Factors like population growth and per capita income are also studied in depth. Also sector wise growth decline and reasons are explained with evidence. Economic downturns and subsequent recoveries in South Asian countries as a whole have been studied extensively. Permanent solutions for the regional economic recovery the South Asia and the necessary recommendations to continue on the growth path are clearly stated. It is also important to expand the trade and industry sector by investing more in Information and Technology (IT) and Research and Development (R&D). Countries like India are exemplary in such activities. The epidemic has had an incalculable impact on the economy and public health of South Asian countries. This chapter examines the social and economic devastation that covid-19 has wrought in South Asian countries in recent years. All economies have faced the need for digital remote services during the pandemic. Overcoming these challenges and identifying the issues and taking appropriate policy measures is an urgent need of the moment.

Challenge, Covid-19, Debt, Economy, Employment, Inflation, Pandemic, Population, Recovery, South Asia