ADB lowers Vietnam’s GDP growth forecast

By Duc Minh   July 19, 2023 | 03:39 pm PT
ADB lowers Vietnam’s GDP growth forecast
Container trucks are seen at Tan Vu Port in Hai Phong City. Photo by VnExpress/Giang Huy
The Asian Development Bank (ADB) has lowered its GDP growth forecast for Vietnam from 6.5% to 5.8% this year due to persistent economic challenges in the Southeast Asian nation.

Vietnam’s industrial and manufacturing sectors continue to face pressure from weak external demand, the bank said in a report.

It also lowered the country’s 2024 growth forecast from 6.8% to 6.2%. Analysts expect inflation to remain at 4% for both this and next year, according to the report.

Vietnam is set to face challenges in achieving its growth target of 6.5% this year after recording only 3.72% growth in the first six months.

Several other organizations have also lowered their expectations for Vietnam’s slumping economy.

The International Monetary Fund has recently adjusted its growth forecast down from 5.8% to 4.7%. Lender UOB has also brought down its prediction from 6% to 5.2%.

ADB expects the Asia Pacific region to record growth of 4.8%, boosted by domestic demand.

Analysts expect the region to experience inflation of 3.6%, lower than ADB’s previous forecast of 4.2%. The reopening of China will also help the region speed up its recovery, according to experts.

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