Vietnam among ASEAN economic drivers
Vietnam, Indonesia and the Philippines are forecast to be economic drivers of the Association of Southeast Asian Nations (ASEAN) in 2016 and 2017, a Moody’s report said in its growth Outlook of ASEAN Economies to Emerge in 2016 and 2017.
The report said growth in the region is expected to be subdued due to lower global demand affecting the export-oriented countries in the region.
The growth prospects of ASEAN’s major export-orientated economies, namely Singapore , Malaysia and Thailand , will remain weaker than those of more domestic demand-driven economies, Indonesia and the Philippines , in 2016 and 2017, said Rahul Ghosh, Moody’s Vice President and senior research analyst.
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Moody’s also pointed to Vietnam as a regional growth outperformer toward 2017 on the back of robust manufacturing activity and strong foreign direct investment (FDI) flows.
Moody’s said export growth is slumping across the region, but its economic impact will vary according to the countries’ dependence on trade, as indicated by its trade to GDP ratio.
According to the ratings agency, total trade—the sum of exports and imports— accounted for 346%, 131% and 130% of the GDP of Singapore, Malaysia, and Thailand, respectively.
These%ages are much higher than the trade to GDP ratios of Indonesia (41%) and the Philippines (58%).
