Monthly Regional Update (February 2021)

Regional Economic and Policy Developments in February

ASEAN’s FDI inflows fell by 31% in 2020 but the region remains attractive, led by Vietnam and Indonesia

Cambodia to sign FTA with South Korea by mid-2021; this would diversify sources of FDI inflows and exports

Lao PDR sets 4% annual growth target for 2021-2025; external stability will remain a major challenge

Myanmar military declares one-year state of emergency, creating concerns over investments and trade

Vietnam targets 6.5%-7.0% annual GDP growth over 2021-25; this would encourage further reforms and privatization

Indonesia’s 2020 GDP falls 2.1%; recovery will continue given supportive policies and progress in vaccination

Philippines 2020 growth is the worst in ASEAN; recovery will be slow given weak demand and limited stimulus