ADB: Vietnam to lose 0.41% of GDP due to COVID-19
| |
COVID-19 impact on GDP of some ADB members (Source: ADB) |
Under ADB’s report titled “The Economic Impact of the COVID-19 Outbreak on Developing Asia” released late last week, Vietnam’s damage was much better than that of other Asian economies, ranking ninth after Taipei (0.44%), Singapore (0.57%), Mongolia (0.74%), mainland China (0.76%), Hong Kong (0.85%), Thailand (1.11%), Cambodia (1.59%) and the Malpes (2.05%).
According to ADB, there are several channels through which the COVID-19 outbreak will affect economic activity in developing Asia and the world. These include a sharp but temporary decline in domestic consumption in China and other outbreak-affected economies, and possibly investment if the outbreak affects views on future business activity; declines in tourism and business travel; spillovers of weaker demand to other sectors and economies through trade and production linkages; supply-side disruptions to production and trade (which are distinct from demand-side shocks spilling over through trade and production linkages); and effects on health such as increased disease and mortality as well as shifts in healthcare spending. Each of these is taken in turn.
ADB says developing members that will be significantly affected are those with strong trade and production linkages with mainland China. In addition to tourism-dependent economies, other developing Asian economies such as Hong Kong (China), Mongolia, the Philippines, Singapore, Taipei (China) and Vietnam will be materially affected by the COVID-19 outbreak. Many of these economies see a significant share of tourists from mainland China and are affected through that channel as well.
“The magnitude of the economic losses will depend on how the outbreak evolves, which remains highly uncertain. The range of scenarios explored in the analysis suggests a global impact in the range of US$77 billion to US$347 billion, or 0.1% to 0.4% of global gross domestic product (GDP),” ADB said in the report.
In a moderate scenario, where precautionary behaviours and restrictions such as travel bans start easing three months after the outbreak intensified and restrictions were imposed in late January, global losses could reach US$156 billion, or 0.2% of global GDP. Mainland China would account for US$103 billion of those losses – or 0.8% of its GDP. The rest of developing Asia would lose US$22 billion, or 0.2% of its GDP.
Related News
Prioritizing semiconductor workforce training
09:16 | 15/12/2024 Headlines
Vietnam-Cambodia: Looking back on journey of cooperation
14:45 | 11/12/2024 Customs
Vietnam-China e-commerce: A perspective from Lang Son border
13:39 | 06/12/2024 Headlines
Vietnam's GDP growth forecast raised due to strong recovery trend
15:48 | 02/12/2024 Headlines
Latest News
Enterprises focus on Tet care for employees
18:59 | 22/12/2024 Headlines
Experts point out economic growth drivers, challenges for next year
18:57 | 22/12/2024 Headlines
Việt Nam’s GDP growth to outpace region peers: Oxford Economics
20:30 | 21/12/2024 Headlines
PM asks efforts to achieve more than 8 per cent economic growth in 2025
20:27 | 21/12/2024 Headlines
More News
Việt Nam's administrative restructuring will not impact foreign investors, says Foreign Ministry
20:25 | 21/12/2024 Headlines
Vietnam’s GDP growth to outpace region peers: Oxford Economics
09:39 | 20/12/2024 Headlines
Government Party Organisation must be elite, streamlined, ensure effective operations: PM
09:34 | 20/12/2024 Headlines
Vietnam among Asia’s 15 largest economies
15:42 | 19/12/2024 Headlines
Chinese media praises Vietnam’s economic achievements, outlook
15:40 | 19/12/2024 Headlines
Vietnam International Defence Expo 2024 opens
15:37 | 19/12/2024 Headlines
Vietnam sees growing number of Chinese investors: forum
15:37 | 18/12/2024 Headlines
Border gate planning: Issues for Lang Son
10:02 | 17/12/2024 Headlines
Vietnam’s GDP growth poised for robust growth in 2024: officials
13:50 | 16/12/2024 Headlines
Your care
Enterprises focus on Tet care for employees
18:59 | 22/12/2024 Headlines
Experts point out economic growth drivers, challenges for next year
18:57 | 22/12/2024 Headlines
Việt Nam’s GDP growth to outpace region peers: Oxford Economics
20:30 | 21/12/2024 Headlines
PM asks efforts to achieve more than 8 per cent economic growth in 2025
20:27 | 21/12/2024 Headlines
Việt Nam's administrative restructuring will not impact foreign investors, says Foreign Ministry
20:25 | 21/12/2024 Headlines