Viet Nam will emerge the least affected with its lead in unwinding measures as compared to other nations in ASEAN, although it is not immune to the sharp slowdown in trade flows.

Viet Nam emerges the least affected with its lead in unwinding measures as compared to other nations in ASEAN, although it is not immune to the sharp slowdown in trade flows, according to the Institute of Chartered Accountants in England and Wales (ICAEW). 

According to the report, written by Oxford Economics and commissioned by the Institute of Chartered Accountants in England and Wales (ICAEW), most Southeast Asian economies will fall into recession in the first half of 2020 before recording a 1.9% contraction for the full year.

Economic growth in the ASEAN region could rebound to an average 8% in 2021, the report said, adding that the adverse impact on Southeast Asian economies is forecast to turn the corner in the second half of 2020 as Chinese import demand and global trade recover at a consistent pace, while a slower pace of normalization will continue to weigh on tourism-dependent economies.

It added that coordinated fiscal stimulus packages and monetary easing from authorities across the region will support the recovery in economic growth.

On the whole, the COVID-19 pandemic is likely to cause the global economy to shrink by 4.7 percent, it noted. This is more than double the impact of the global financial crisis in 2008 and will be the biggest global recession in post-war history.

Founded in the UK in 1880, ICAEW is a world leading professional membership organization headquartered in London with offices internationally including Kuala Lumpur, Singapore, Viet Nam and Indonesia.

The ICAEW connects with over 150,000 chartered accountants worldwide, providing this community of professionals with the power to build and sustain strong economies.