A corner of Nha Trang city in Khanh Hoa province (Photo: VNA)According to thereport, the regional economies began to bounce back in the secondhalf of 2020. However, only Vietnam and China have followed a V-shape recoverypath with output surpassing pre-COVID-19 levels.
Vietnam and China are expected to enjoy strong growth in 2021, whereas othereconomies in the region will grow more gradually, the bank said.
Specifically, China and Vietnam's economies are expected to grow by 8.1 percent and 6.6 percent this year, respectively, while the rest of the region is forecast to grow by only 4.4 percent.
Most of the other countries have not seen a full-fledged recoveryin terms of either output or growth momentum. Economic performance across countriescontinues to depend on the efficiency with which the COVID-19 pandemic is contained, theability to take advantage of the revival in international goods trade, and thecapacity of governments to provide fiscal and monetary support.
Many economies, especially in the Pacific islands are not expectedto reach pre-COVID-19 levels of output until 2022 or later, the bank said.
Most of the other countries have not seen a full-fledged recoveryin terms of either output or growth momentum. Economic performance across countriescontinues to depend on the efficiency with which the COVID-19 pandemic is contained, theability to take advantage of the revival in international goods trade, and thecapacity of governments to provide fiscal and monetary support.
Many economies, especially in the Pacific islands are not expectedto reach pre-COVID-19 levels of output until 2022 or later, the bank said.
Countries that cannot fully restoretheir export sectors, or that rely too heavily on tourism, are going through atough time to achieve modest growth by 2021, the bank said.
In Thailand and in the Philippines, output isprojected to remain below pre-pandemic levels until 2022. Among smallercountries, the recovery is expected to be particularly protracted in tourism dependentIsland economies, with growth expected to be negative in about half of thecountries.
The report noted that publicdebt in the region increased on average by more than 7 percent of GDP, as governmentscommitted to fiscal support equal to nearly 10 percent of GDP in 2020.
Growing public debt and widening fiscal deficitswill constrain further government spending in the near term.
While rising public debt and fiscal deficits arelikely to limit government spending in the coming time, the WB said fiscalpolicy should play three roles at the same time, including economic relief,recovery assurance and growth promotion.
The WB also stressed that the global tourism industry is not projected to return to pre-pandemic levels until 2023, thereby delaying economic recovery in economies heavilydepending on the industry./.
In Thailand and in the Philippines, output isprojected to remain below pre-pandemic levels until 2022. Among smallercountries, the recovery is expected to be particularly protracted in tourism dependentIsland economies, with growth expected to be negative in about half of thecountries.
The report noted that publicdebt in the region increased on average by more than 7 percent of GDP, as governmentscommitted to fiscal support equal to nearly 10 percent of GDP in 2020.
Growing public debt and widening fiscal deficitswill constrain further government spending in the near term.
While rising public debt and fiscal deficits arelikely to limit government spending in the coming time, the WB said fiscalpolicy should play three roles at the same time, including economic relief,recovery assurance and growth promotion.
The WB also stressed that the global tourism industry is not projected to return to pre-pandemic levels until 2023, thereby delaying economic recovery in economies heavilydepending on the industry./.
VNA
