A surging U.S. economy on the back of massive stimulus and pent-up demand will benefit exporters in Asia, with Vietnam receiving the biggest windfall, according to Bloomberg Economics.
If the U.S. growth rate accelerates to 7.7% in 2021 as forecast by Bloomberg Economics, up from the 3.5% seen late last year, that would add more than 1 percentage point to Vietnam’s expansion, research by Chief Asia Economist Chang Shu showed Tuesday.
“U.S. growth upgrades are good news for Asian exporters,” Shu wrote, noting that the U.S. buys more than 10% of Asia’s exports on average. In addition to the increase in direct demand, “there are also likely to be significant indirect spillovers” with Asian firms entwined in a web of supply chains to the U.S.
(credit: Jiyeun Lee, Bloomberg Economics)