Import-control measures and energy shortages are affecting the industrial output of a number of countries in South Asia, including Bangladesh, according to the International Labour Organization (ILO).

Many countries in Asia and the Pacific were able to avoid the accelerating inflation seen in other regions, said in a new report of the ILO's World Employment and Social Outlook Trends: 2024 (WESO Trends), which was published yesterday.

"Several South Asian nations -- including Bangladesh, India and Pakistan -- have implemented import suppression measures and face energy shortages, both of which have been affecting industrial output," the ILO said.

These countries also have limited fiscal room to provide stimulus or respond to exogenous shocks in the future, should that be required.

Moreover, countries such as Sri Lanka and Pakistan, have been struck by financial crises.

Nevertheless, India has buoyed growth for the South Asia sub-region, thanks in part to high investment growth.

The report added that, in South-East Asia, Indonesia also is expected to have exhibited relatively strong growth through 2023, which is projected to continue into 2024, as a result of high commodity prices bolstering export earnings.

In Asia and the Pacific, gross domestic product (GDP) is estimated to have grown by 4.3 percent in 2023. The re-opening of economies from Covid-19 restrictions, including the removal of lockdown measures in China, contributed to stronger growth in 2023, compared to 3.9 per cent in 2022.

In China, the removal of these constraints resulted in increased domestic spending as households spent accumulated savings, according to the World Bank.

On the other hand, labour markets have shown surprising resilience despite deteriorating economic conditions, but recovery from the pandemic remains uneven as new vulnerabilities and multiple crises are eroding prospects for greater social justice, said the ILO's report.

It found that both the unemployment rate and the jobs gap rate -- which is the number of persons without employment who are interested in finding a job -- have fallen below pre-pandemic levels.

"The 2023 global unemployment rate stood at 5.1 percent, a modest improvement from 2022, when it stood at 5.3 percent. The global jobs gap and labour market participation rates also improved in 2023," said the report.

However, beneath these numbers, fragility is starting to emerge, the report found.

It projected that the labour market outlook and global unemployment would worsen.

"In 2024, an extra 20 lakh workers are expected to be looking for jobs, raising the global unemployment rate from 5.1 percent in 2023 to 5.2 percent," it said.

Disposable incomes have declined in the majority of G20 countries and, generally, the erosion of living standards resulting from inflation is "unlikely to be compensated quickly," it said.

Furthermore, important differences persist between higher and lower income countries.

While the jobs gap rate in 2023 was 8.2 percent in high-income countries, it stood at 20.5 percent in the low-income group.

Similarly, while the 2023 unemployment rate persisted at 4.5 percent in high-income countries, it was 5.7 percent in low-income countries.

Moreover, working poverty is likely to persist.

Despite quickly declining after 2020, the number of workers living in extreme poverty (earning less than US$2.15 per person per day in terms of purchasing power parity) grew by about 1 million in 2023. The number of workers living in moderate poverty (earning less than US$3.65 per day per person in terms of purchasing power parity) increased by 8.4 million in 2023.

Income inequality has also widened, it warns, adding that the erosion of real disposable income "bodes ill for aggregate demand and a more sustained economic recovery".

In 2024, rates of informal work are expected to remain static, accounting for around 58 percent of the global workforce.