ADB downgrades growth forecast for Viet Nam to 5.2 percent
VGP - The Asian Development Bank (ADB) reduced its growth forecast for Viet Nam this year to 5.2 percent from the previous 5.8 percent.
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The lender projected Viet Nam's Gross Domestic Product (GDP) at 6 percent for 2024.
ADB attributed weaker-than-expected recovery of external demand to impeding industry and services output, thereby dragging the recovery of jobs and domestic consumption.
Inflation rate was predicted at 3.8 percent for this year before accelerating to 4 percent in 2024.
ADB blamed risks to the outlook including interest rate hikes in the U.S. and other advanced economies, a factor which could contribute to financial instability occurring in vulnerable economies around the region, especially those with high debt.
Potential supply disruptions caused by the El Nino weather pattern or the Russia-Ukraine conflict could also rekindle inflation, particularly with regard to food and energy.
Earlier, experts from the International Monetary Fund (IMF) maintained their forecast for Viet Nam’s GDP growth at 4.7 percent in 2023 but expressed their optimism about the medium-term prospects, with GDP growth predicted to reach 5.8 percent in 2024 and 6.9 percent in 2025.
The WB forecasted that Viet Nam’s economy would grow 4.7 percent in 2023, and accelerate to 5.5 percent in 2024 and 6.0 percent in 2025./.
