While the coronavirus pandemic upended state spending plans and left economies reeling, its impact is likely to pale in comparison to challenges such as ageing populations, according to the Organisation for Economic Co-operation and Development (OECD). The Paris-based group’s secretariat said on Tuesday that before the pandemic, governments were facing health spending rises of over two percentage points of gross domestic product (GDP) between now and 2060 and around the same for pensions in countries with what the OECD labelled “unfavourable demographics.” By comparison, recently accrued government debt to pay for pandemic-related social and health spending is likely to add “only about 1/2 percentage point of GDP to long-run fiscal pressure in the median country,” according to the OECD.
JAKARTA — Vehicle sales in Southeast Asia are set to outpace all other regions of the world during 2017, according to industry research, highlighting surging economic expansion in some parts of the region. But the growing number of new cars and trucks in urban centers is likely to worsen commerce-stifling traffic jams in major cities such as Bangkok, Jakarta and Manila — adding urgency to much needed transport infrastructure upgrades throughout much of the region. BMI Research — part of Fitch Group, a financial information company — has forecast that total vehicle sales in the Association of Southeast Asian Nations will grow 8.1% in 2017, a marked increase in the combined 3.1% car sales growth the previous year across the 10 ASEAN countries, and more than double the sales growth rate of 3.7% projected for Asia as a whole in 2017. “Looking at passenger cars specifically, we expect Cambodia, the Philippines and Vietnam to be the best performing autos markets in the ASEAN region in 2017 with forecast growth of 20.4%, 19.2% and 18.0% in passenger car sales respectively,” BMI said in a recent report on the sector, citing “solid economic growth, strong private consumption and tax reform” as drivers of the car sales spike.