IMF reveals mixed economic forecasts for Southeast Asia with a focus on Vietnam, Malaysia, and Indonesia. The IM predicts that Southeast Asia’s six leading economies are expected to face variants of fiscal parts in 2021. With Vietnam, Malaysia, and Indonesia gaining from the pre-pandemic levels while Singapore, Thailand, and the Philippine scramble to return to fiscal health.
Compilations of the International Monetary Fund’s Country projections
Nikkei has compiled the IMF’s country based projections for a real gross domestic product with 2019 figures being set as a baseline of 100. Vietnam, Malaysia, and Indonesia all score above 100 marks in 2021. This means that their economies are expected to expand next year compared to the level before the coronavirus outbreak in 2019. Currently, all six countries face uncertainties from the epidemic and also uncertainties attached to the incoming United States administration.
Vietnam leading Southeast Asia six in 2021
Vietnam is forecasted to lead South Asia six with a projected growth index of 108.4. S.P Global predicts that the Vietnamese economy will expand in real terms by 10.9% in 2021. These numbers are more than any other country in the Asia Pacific, which follows a 2.91% uptick. Vietnam is also the only country out of the six to log real economic growth in 2020. This is thanks to its swift success in getting the coronavirus pandemic. The leadership bolstered effective demand through public projects ahead of the communist party congress that begins in January 2021.
Indonesia comes in second with a growth index of 104.5
The omnibus law signed by President Joko Widodo in November 2020 is expected to give companies greater freedom and attract foreign investment when it kicks off. Malaysia with an index of 101.3 will see exports from products like electronics recover once the global economy stabilizes.