Regional recovery hopes could be further dampened by China curbs

THE so-called unfettered recovery party that Southeast Asia was expected to chart in 2021 is increasingly becoming a no-show amid a fresh coronavirus wave sweeping across the region.

While the regional rebound after a devastating recession last year was expected to be bumpy - and fragmented given the divergent economies - hopes for a full-blown recovery this year are fast fading amid rising Covid-19 cases. Renewed lockdowns to curb the outbreak have crimped economic activity, reduced mobility and hurt consumption.

For one, much of the region is battling the new wave driven by the Delta variant with a blunt tool - low vaccination rates. Singapore - which has hit 70 per cent full vaccination, started to ease some Covid curbs and appears on track to reopen its borders later this year - has become a bright spot in the region. Its economic growth forecast for the year has been upgraded following a better-than-expected second-quarter showing.