The global recession and COVID-19 pandemic heavily affected CLMV economies in 2020, resulting in major slowdown in Vietnam and Myanmar whereas Laos and Cambodia faced economic contractions from additionally specific negative factors.

While showing signs of bottoming out in 2020, the overall CLMV recovery thus far remained sluggish, with the exception of Vietnam, supported by its robust exports and success in contained COVID-19 cases. For 2021F, EIC expects the overall CLMV economic recovery to remain gradual and uneven, while continuing to hinge on 3 major factors:

1) the effectiveness of COVID-19 containment and vaccine progress,

2) the size of stimulus packages to mitigate the scarring effects, while waiting for the herd immunity, expected to take place in 2022F in this region, and

3) country specific risks, such as debt distress in Laos and recent political uncertainty in Myanmar.

Within the region, Vietnam’s economy is projected the fastest growth due to ongoing strong exports performance for electronics products and a resilient domestic economy.

Meanwhile, Myanmar is expected to have another sluggish year due to negative factors from both the prolonged COVID-19 pandemic and political turmoil.

Source : CLMV Outlook / CLMV Outlook by EIC Q1/2021 | Economic Intelligence Center (EIC)

About the author

Leave a Reply

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Emerging Market Trends: global cooperation increased in 2021

Following on from a year in which supply chains and international travel were severely disrupted, 2021 saw an increase in global cooperation, as institutions, businesses and governments alike sought to work together to find solutions to some of the world’s major challenges.

Thailand’s inflation rate reaches 2.71% in November

The inflation rate is calculated based on the prices of 430 items. And as many as 235 items were sold at a higher price in November, including cooking oil and coriander.

Thailand relaxes COVID-19 measures to help revive economy

During the past couple weeks, new infection cases have been down from roughly 20,000 daily cases to 17,000 -19,000. Moreover, the number of daily discharges is exceeding infections, which has led to the conclusion that the situation is improving.