Asian nations, including China, Singapore, India and Indonesia, are set to brush aside the COVID-19 pandemic’s impact and would enter the ‘Goldilocks’ phase in 2021, according to a report by Morgan Stanley, which recently suggested that countries, including India, have seen some action from the government that is set to have an impact on the economy.

Goldilocks economy—not too much deflation, not too much inflation—sustains moderate economic growth.

“The macroeconomic impact on AxJ (Asia except for Japan) from COVID-19 resurgence in different parts of the world has been manageable so far. We remain bullish and expect AxJ to transition from below-trend growth this year to a new ‘Goldilocks’ phase in 2021,” the report by Morgan Stanley economists Deyi Tan, Zac Su, Jin Choi and Jonathan Cheung said.

In economies where the COVID-19 situation is under control or improving, policymakers are fine-tuning measures, the report added. China has again tightened its border controls amid the recent rise in COVID-19 cases globally.

“India issued new guidelines to manage risks from recent festivity, onset of winter and lax adherence. Elsewhere, social distancing measures have been tightened in Korea (with a shift to a five-level social distancing system) and in Hong Kong. In Indonesia, the transitional large-scale social distancing measures in Jakarta were extended for another two weeks until December 6,” it added.