Vietnam ranks 12th among the 66 emerging economies regarding financial strength. (Photo: zingnews.vn)Hanoi(VNA) – Vietnam has been listed as the 12th strongest economy, according to TheEconomist’s report on the financial strength of the 66 emerging economies inthe wake of the COVID-19 fallout.
The ranking examinesthe vulnerability of selected economies across four potential sources of peril– public debt, foreign debt and cost of borrowing and reserve cover.
The Economist calculatedtheir likely foreign payments this year (their current-account deficit plustheir foreign-debt payments) and compare this with their stock offoreign-exchange reserves. A country’s rank on each of these indicators is thenaveraged to determine its overall standing.
Vietnam is inthe safe group thanks to stable and strong financial indicators.
Accordingly,more than 30 emerging economies are facing great pressure, the worst beingLebanon and Venezuela.
Botswana topsthe list of the safe economies, followed by Taiwan (China) and the Republic of Korea.
The Economistsaid that most of the economies were strong enough to overcome the pandemic.The 30 weakest economies was relatively small, accounting for only 11 percentof the total GDP of the 66 economies.
It said theCOVID-19 hurts emerging economies by locking down their populations, damagingtheir export earnings and deterring foreign capital.
Even if thepandemic fades in the second half of this year, GDP in developing countries,measured at purchasing-power parity, will be 6.6 percent smaller than the IMF’sforecast in October, states the report./.
VNA
