Vietnam ranks third among CIVETS

27 Jul
Vnre.blogspot.comVietnam ranks third among six favored emerging markets -CIVETS. The acronym, which stands for Colombia, Indonesia, Việt Nam, Egypt, Turkey, and South Africa, was again coined by Goldman Sachs’ chief economist Jim O’Neill.
No member of the CIVETS sees flying-horse inflation (except for Egypt) and low current account deficit.

Việt Nam boasts for positive long-term economic prospect.

Apart from the strong economic background, Việt Nam proves it can live well through the global financial crisis and economic downturn by issuing well-directed policies.

Moreover, political stability here has contributed to economic growth.

CIVETS economies will expand at 4.5% annually in the next 20 years, just 0.4 points lower compared to the BRIC’s rate of 4.9%.

The emergence of these economies will help consolidate economic outlooks in their regions and speed up economic transferring globally.

“Each has a very bright future,” HSBC CEO Michael Geoghegan said of the CIVETS. “Each has large, young, growing population. Each has a diverse and dynamic economy. And each, in relative terms, is politically stable.”

Geoghegan, whose bank is the biggest in Europe but is targeting emerging markets for growth, said the growing importance of countries also including Mexico, Indonesia and Turkey will continue the power shift away from traditional economic strongholds of Europe and the United States.

Emerging markets will grow three times faster than developed countries this year and are driving global recovery, he said.

“Within three years, for the first time, the economic firepower of emerging markets will overtake the developed world, measured by purchasing power parity. It’s a defining moment.”

Reported by Hai Minh/ VPG News

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