Nonresident capital inflows in Asia and the Pacific have doubled in the last decade, with notable changes in the composition and patterns of capital flows.
Producing semiconductors are highly specialized and geographically concentrated, rendering the sector vulnerable to supply chain disruptions. To ensure supply, an enabling environment research and development (R&D), investments, and skills development are key areas of government intervention.
Remittance inflows to Asia and the Pacific displayed resilience despite the pandemic, propping up limited fiscal space and providing a lifeline to many affected households in the region. Several factors have contributed to this, as explained in Chapter 5 of the AEIR 2022.
Strong recovery in merchandise trade and improved FDI inflows mirror the resilience and attractiveness of Asia and the Pacific and its stronger economic growth prospects. Chapter 1 of AEIR 2022 discusses in greater detail.