Viet Nam’s economy recovers gradually: WB

At a press conference held by the WB on April 23, Andrea Coppola said real exports are expected to grow by 3.5 percent in 2024, reflecting a gradual improvement in global demand.

In addition, a turnaround in the real estate sector is anticipated later this year and next year, bolstering domestic demand as investors and consumers regain confidence, the economist added.

According to the latest WB Taking Stock bi-annual economic update released on April 23, Viet Nam's economy is showing mixed signs of recovery in early 2024, with growth forecast to reach 5.5 percent in 2024 and gradually rise to 6 percent by 2025.

Senior Economist at the WB in Viet Nam Dorsati Madani said the forecast is based on the assumption that exports of manufactured industrial goods will recover significantly in 2024 thanks to a rebound growth of 8.5 percent compared to the same period last year in the fourth quarter of 2023 and a 17.2 percent increase year-on-year in the first quarter of 2024; and an improving global demand.

Export of manufactured industrial commodities is expected to continue recovering in the next two years. The real estate market is predicted to transition towards an upward trend in late this year and early 2025, as the frozen bond market loosens and the Land Law takes effect from January 2025.

Real total investment and private consumption are projected to increase by 5.5 percent and 5 percent in 2024, respectively.

According to Dorsati, inflation is forecast to increase slightly to 3.5 percent in 2024 from an average of 3.2 percent last year, and then stabilize at around 3 percent in 2025 and 2026. This projection is based on expectations of stable energy and commodity prices./.