|Illustrative image (Photo: Bloomberg)
The country, along with Indonesia, Malaysia, the Philippines and Thailand – all from the ASEAN bloc – were named as major drivers of growth against a gloomy backdrop of stalled international trade, rising uncertainty and escalating trade tension, which has been forecast to result in slower growth in the next five years on a global scale.
Traditional top players such as China and the US are likely to experience slow growth with China’s share of global GDP expected to fall from 32.7 percent in 2018-2019 to 28.3 percent by 2024, a steep fall off of 4.4 percentage points.
The US economy looks to slip from 13.8 percent to 9.2 percent by 2024, losing its second seat to India, whose share is projected to reach 15.5 percent.
Other large economies such as Japan and the UK stand to lose their ranking to emerging economies such as Brazil and Russia with the UK’s growth suffering a heavy blow from the effect of Brexit, falling from 9th place to 13th.
Vietnam, however, is unlikely to retain its place among the top 20 countries over the next five years as it’s facing numerous daunting challenges to sustain the rapid growth it has experienced in previous years. Indonesia, Malaysia, the Philippines and Thailand, on the other hand, are projected to stay right on track of their impressive growth path.
In addition, the IMF’s data showed the global growth engines in five years include Canada, Mexico, Pakistan, Poland, Saudi Arabia, Spain and Turkey.