The Covid-19 pandemic came as a great shock to most economies, including Vietnam. Still, Vietnam’s resilience proves this is also an opportunity for the country to give the private sector and the domestic market more attention. The public debt-to-GDP ratio is expected to be 46.1% in 2021, on the basis of GDP revaluation, so it is quite possible to improve this ratio, especially in the context of real interest rates around 0% in developed economies, plus a high savings rate at home. However, policies such as increasing public debt and curbing inflation need to be carefully studied with data of Vietnam concerning the following two issues. … [Read more...] about Demand stimulus: where to begin?
