After having recorded consistent budget surpluses since 2010, the government’s fiscal position deteriorated to a balanced budget in 2015, followed by budget deficits during 2016 and 2017 due to reform slippage and a change in government priorities. Joint policy dialogue with development partners through the government-led Core Economic Working Group (CEWG) lapsed during this period.
By 2012, the Indonesian economy had recovered from the 2008 global financial crisis, with gross domestic product (GDP) growth above 6%, the debt-to-GDP ratio declining, the fiscal deficit below 2% of GDP, and the primary balance in surplus. Inflation was low in comparison to previous periods and the current account was in surplus.
After decades of preferential treatment, incentives, and subsidies, state-owned enterprises (SOEs) in Viet Nam failed to compete effectively, and their financial problems created significant fiscal risks. Having virtually no access to private capital markets, general corporations had relied on extensive borrowing from the government and state-owned commercial banks to finance their operations.
Within the past two decades, Cambodia has transformed from a post-conflict country to a small, open and vibrant economy, growing by more than 10% in 2004 and maintaining a double-digit expansion through 2007.