Many developing nations in the East Asia/Pacific region will take a major hit economically due to the coronavirus outbreak, but some are also expected to finish off 2020 escaping negative GDP growth. According to a report by the Asian Development Bank published today, Southeast Asian countries like Thailand and the Philippines are expected to deal with the biggest losses, while Vietnam and China are expected to record GDP growth of 1.8 percent each for the year. Taiwan is projected to escape the negative figures narrowly at 0.8 percent growth.
Liquidity moves markets!Follow the money. Find the profits!
Countries that rely on tourism heavily (Thailand, Cambodia) have proved vulnerable in this crisis, as are countries which carry high debts (Thailand, Malaysia, Vietnam). Yet, Vietnam has profited from picking up slack left by decreasing Chinese export early in the year. The country’s manufacturing sector had been taking over certain market segments even before the crisis as the Chinese economy is transitioning to a higher value-added model.
On the whole, developing economies in Asia are expected to shrink by 0.7 percent in 2020. The report expects the region’s economy to generally bounce back in 2021 and experience stronger growth than it had in 2019.
This chart shows the projected change in GDP growth between 2019 and 2021 in developing Asian countries due to the coronavirus outbreak.
Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.