S&P forecasts Vietnam's economic growth to rank 2nd in Asia-Pacific

According to S&P forecasts, Vietnam's GDP growth is estimated at 1.9% in 2020 and 11.2% in 2021. (Source: Dan Tri)

In a recently released report, S&P revised its GDP growth forecast for Southeast Asian economies based on data on trade and consumption. According to S&P forecasts, Vietnam's GDP growth is estimated at 1.9% in 2020 and 11.2% in 2021.

In the Asia-Pacific, China is expected to be the country that recorded the strongest growth. S&P raised its growth forecast for the world's second-largest economy to 2.1 percent, up from 1.2 percent in its previous estimate. However, the organization lowered its estimate of China's GDP growth in 2021 from 7.4% to 6.9%.

According to S&P, the region's economy is expected to shrink by 2 percent this year and will recover again and next year, with a growth rate of 6.9 percent.

It is also worth noting that the Philippines' economic growth is the lowest among the 14 economies (-9.5%), followed by India (-9%). Some other countries' growth estimates are Thailand (-7.2%), Singapore (-5.8%), Malaysia (-5%) and Indonesia (-1.1%).

According to this US-based rating organization, employment is a decisive factor for the region's recovery. The sector is expected to return to pre-pandemic levels in 2022. S&P also noted that economic growth in the Asia-Pacific region will be boosted by trade and manufacturing, but that a full recovery will require an improvement in the services sector.