A report by the Wall Street Journal on Monday, claims the highly contagious Delta variant is stalling Asia's economic recovery after an early rebound.
The report said that adding to rising COVID-19 cases, slow progress on vaccinations has begun to paralyze the region that had, until recently, kept the virus in check.
Southeast Asia, showed the largest decline in manufacturing production since May last year, due to the recent introduction of social distancing and lockdown measures.
The Wall Street Journal also noted that exporting countries in Asia, such as South Korea and China, which have benefited from a rebound in overseas consumer deman are also showing signs of slowing down.
It also predicts the rise in cases could change Asian central banks' plans to normalize monetary policy.