Economists: Vietnam is among the safe economies after COVID-19

Vietnam has been listed as the 12th strongest economy, according to The Economist’s report, on the financial strength of 66 emerging economies after the collapse of COVID-19.

The rankings look at the vulnerability of selected economies on four potential sources of risk – public debt, external debt and the cost of borrowing and contingency insurance.

The economist calculated their likely foreign payments this year (current account deficit plus their foreign debt payments) and compared this to the foreign exchange reserves of surname. The national ranking on each of these indicators is then averaged to determine its overall position.

Vietnam is in a safe group thanks to strong and stable financial indicators.

Accordingly, quite 30 emerging economies face great pressure, the worst being Lebanon and Venezuela.

Botswana tops the list of safe economies, followed by Taiwan (China) and South Korea.

Economists think most economies are strong enough to survive a pandemic. The 30 weakest economies are relatively small, accounting for only 11% of the GDP of 66 economies.

It says COVID-19 hurts emerging economies by locking down their population, damaging their export earnings and discouraging foreign capital.

Even if the pandemic disappears in the second half of this year, GDP in developing countries, measured by purchasing power levels, will be 6.6% smaller than the IMF forecast in October, the report said.

Source: VNA

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