SEASI: Vietnam is only ASEAN country expecting GDP growth in 2020

Friday, 02 October 2020 17:00:08 (GMT+3)   |   Istanbul
       

According to the South East Asia Iron and Steel Institute (SEAISI), the Vietnam government’s forecasts show that Vietnam is the only ASEAN-6 country expecting a positive gross domestic product (GDP) growth rate in the current year. The country is expected to sustain economic growth of 2-2.5 percent due to its early measures to tackle the coronavirus pandemic, despite a second outbreak in the country’s central region.

Vietnam will need to increase public spending on major infrastructure works for sustainable growth, creating jobs and boosting industrial demand. This is expected to lead the country toward a growth of 6.7 percent in 2021. The country’s economy will benefit from the recovery of the Chinese economy and implementation of the free trade agreement with the EU.

Indonesia expects a small contraction in its economy, while still trying to control the pandemic. Thailand’s government is planning to increase spending on road and rail projects to boost its economy further.

Malaysia and Singapore have announced stimulus packages to revive their domestic economies as external demand remains weak.

ASEAN-6 government forecast (%)

GDP Growth

2020

2021

Indonesia

-1.7 to -0.6

+4.5 to +5.5

Malaysia

-5.5 to -3.4

+5.0 to +8.0

Philippines

-5.5

+6.5 to +7.5

Singapore

-5.0 to -1.0

-

Thailand

-6.0 to -5.0

+4.0 to +5.0

Vietnam

+2.0 to +2.5

+6.7


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