The Center for Economics and Business Research (CEBR) released a forecast for the economic growth of 191 countries in 2036, highlighting that Vietnam unexpectedly moves up to rank second in Southeast Asia and Indonesia continues to have the largest economy in Southeast Asia and is ranked eighth in the world.
According to the report, Vietnam's GDP per person is anticipated to be $11,608 in 2021 after being adjusted for purchasing power parity.
The current five-year plan, which covers the years 2021 to 2025 and emphasizes the continuation of the current economic development model, is used by the economy to forecast its future. Manufacturing will underpin growth, which will be aided by deeper integration into global supply chains, the pursuit of trade alliances, and export diversification.
The strong GDP growth in 2021 has been supported by a labor market that has shown resilience. The unemployment rate dropped to 2.7 percent in 2021, a decrease of 0.6 percentage points.
Government debt as a percentage of GDP increased to 47.9 percent in 2021 from 46.3 percent the year before. This rise can be attributed to how the pandemic has affected tax revenues and government spending.
According to the IMF, Vietnam will surpass Malaysia ($556 billion), the Philippines ($523.53 billion), and Singapore ($496.81 billion) by 2025 and move up to third place in Southeast Asia in terms of economic size, behind Indonesia ($1.63 trillion) and Thailand ($632.45 billion).
Thailand's GDP will reach $692.6 billion by 2027, and Vietnam's GDP will reach $690.11 billion. Vietnam's economy is anticipated to officially exceed Thailand's after 2028.
Vietnam's economy will overtake Poland, Switzerland, Sweden, Belgium, and Australia by 2036, according to CEBR's prediction.
There are still 14 years to go before we find out if this prediction comes true or not.
Source: Center for Economics and Business Research (CEBR) Report, vir.com.vn