Vietnam forecast to sustain growth this year
Wednesday, 26/08/2020 11:17 (GMT+7)
By taking the lead in the fight against COVID-19, Vietnam has increased its footprint on the world economy, thereby luring foreign businesses which are seeking ways to diversify their operations and reduce risks related to other shocks in the future.
Photo for illustration. (Source: cafef.vn)
In a recent article, the Economist (UK) said 2020 is a good time which economists call “evolutionary convergence” for poor economies to grow faster than rich ones, and thus the income gap will be narrowed.
However, 2020 will be slightly different due to impacts of the COVID-19 epidemic. Very few emerging economies will grow this year, but developed economies will recede faster, thus the gap between developing economies and developed ones will still be narrowed.
The article also stated that few emerging markets will grow at all – perhaps China, Egypt and Vietnam.
According to the World Bank, Vietnam has favorable conditions to escape from the economic trap caused by COVID-19.
Because the Vietnamese Government has created enough fiscal space to carry out measures to stimulate an ambitious fiscal year, the government can increase total demand in the short term and total supply in the long term by spending more and better./.
BTA
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