ADB Revises Down Vietnam's GDP Growth Forecast

ADB Revises Down Vietnam's GDP Growth Forecast

The Asian Development Bank (ADB) has adjusted its GDP growth forecast for Vietnam, lowering it from 6.5% to 5.8% for this year. The revision reflects the persistent economic challenges faced by the Southeast Asian nation. According to the ADB report, Vietnam’s industrial and manufacturing sectors are experiencing pressure due to weak external demand. Additionally, the ADB has also revised down Vietnam’s growth forecast for 2024 from 6.8% to 6.2%.

Analysts cited in the report anticipate that inflation will remain at 4% for both this year and the next. Vietnam is expected to face difficulties in achieving its growth target of 6.5% for this year, especially after recording only 3.72% growth in the first half of the year. Other organizations have also adjusted their expectations for Vietnam’s struggling economy. The International Monetary Fund recently revised its growth forecast down from 5.8% to 4.7%, while lender UOB lowered its prediction from 6% to 5.2%.

On a broader scale, the ADB expects the Asia Pacific region to achieve a growth rate of 4.8%, driven by domestic demand. Analysts predict that the region will experience inflation of 3.6%, which is lower than the ADB’s previous forecast of 4.2%. Experts also believe that the reopening of China will contribute to the region’s accelerated recovery.

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