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Measuring economic resilience

ESCWA Publication: E/ESCWA/CL6.GCP/2025/TP.6


Country: Arab region, Global

Publication Type: Information material

Cluster: Governance and Conflict Prevention

Focus Area: Governance & enabling environment

Initiatives: Governance and institution building, Statistics Governance

SDGs: Goal 8: Decent Work and Economic Growth, Goal 16: Peace, Justice and Strong Institutions

Keywords: Africa south of sahara, Arab countries, Asia and the pacific, Capacity building, Central asia, Developing countries, Development assistance, Development potential, Europe, Financial flows, Governance, Human development, International trade, Latin america and the caribbean, Measurement, North america, Recovery, Remittances, Resilience, Risk management, Statistical data, Statistical methodology, Sustainable development, Tourism

Measuring economic resilience

August 2025

Economic resilience plays a vital role in enabling countries to maintain development progress in the face of external shocks. As the global environment becomes more uncertain, assessing how economies prepare for, withstand and recover from disruptions has gained greater relevance. While income level is often seen as an indicator of resilience, it does not fully capture the differences in countries’ vulnerability or capacity to respond.

This paper introduces the Economic Resilience Index, a composite measure that assesses national economies’ capacity to absorb, adapt to and recover from external shocks. The Index captures two key dimensions: structural vulnerabilities and internal coping capacities. Findings indicate that many developing countries face a dual burden of high exposure and weak capacities, and that several countries in the Arab region exhibit low resilience relative to their income levels. By identifying specific vulnerabilities and strengths, the Index informs evidence-based strategies to support the development of adaptive, inclusive and robust economies.

 

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