SEAISI: ASEAN economies hit by pandemic in 2020, Vietnam sees less damage

SEAISI: ASEAN economies hit by pandemic in 2020, Vietnam sees less damage

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The South East Asia Iron and Steel Institute (SEAISI) has made a statement regarding the economic performance in ASEAN-6 countries during Coronavirus pandemic. Accordingly, ASEAN economies have been hit by the pandemic with severe contractions in many economic sectors amid restrictions.

Indonesia’s economy has slowly recovered in the second half of 2020 as many sectors and activities re-open. Mining, manufacturing and construction sectors registered a decline of 2-3 percent, while construction sector is expected to grow by 5.2 percent in 2021. The country’s GDP growth rate slowed down at 2.07 percent in 2020 is expected to pick up at five percent in 2021.

Malaysia’s economy was also hit hard, especially in the second quarter of 2020. The country’s GDP contracted by 5.6 percent in 2020 and is expected to rebound by 6.5-7.5 percent in 2021. The construction sector will pick up from a decline of 19 percent in 2020 to a positive growth rate of 13.9 percent in 2021. 

Philippines’ economy contracted by 10 percent in the first three quarters of 2020. Despite the relaxing of restrictions, the economy in the fourth quarter of 2020 continued to decline by 8.3 percent year on year. In total, the country’s economy in 2020 dropped by 9.5 percent amid the sharp dive in private domestic demand and the decline in trade due to the strict measures. The government expects economy to pick up by 6.5-7.5 percent in 2021. The construction sector in Philippines contracted 9.2 percent in 2020. The country’s construction sector is expected to bounce back at an average growth rate of 8.3 percent till 2024. 

Singapore’s economy contracted by 5.4 percent in 2020, which is slightly better than the official contraction forecast of 6-6.5 percent. Manufacturing sector in the country grew by 7.3 percent in 2020. Construction demand decreased by 37 percent as construction companies grapple with the lack of labor during the outbreak. It is expected that construction demand will pick up on the sustained activities for both private and public projects in 2021. 

Thailand’s overall GDP growth in 2020 dropped by 6.1 percent, as a result of a sharp drop in second and third quarters. However, many indicators show recovery signs in the fourth quarter of 2020. It is expected that the country’s economy will pick up at 2.5-3.5 percent in 2021. Construction sector was badly hit in the fourth quarter of 2020 and the first quarter of 2021, but is expected to recover by 4.5-5 percent in 2021. 

Vietnam is one of the fastest countries to control Coronavirus, resulting in business activities accelerating in the third quarter of 2020, at 2.7 percent, and 4.5 percent in the fourth quarter of 2020. The country’s GDP growth rate remained positive at 2.9 percent year on year in 2020. According to Vietnam Steel Association, Vietnam’s economy is expected to increase at 6-7 percent in 2021. Construction growth rate fell by 4.4-4.6 percent in the first two quarters of 2020 and picked up with a growth rate of 5.7 percent in the third quarter.

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