ADB lowers Vietnam's economic growth forecast to 5.8% in 2023

The ADB has revised its GDP growth forecast for Vietnam down to 5.8 per cent for 2023 and 6.5 per cent for 2024, from 6.5 per cent and 6.8 per cent in April. —VNA/VNS

HANOI (Xinhua): The Asian Development Bank (ADB) on Wednesday (Sept 27) revised down its forecast of Vietnam's gross domestic product (GDP) growth in 2023 to 5.8 per cent from the previous estimate of 6.5 per cent in April.

The Southeast Asian country's economy is expected to grow 6.0 per cent in 2024, down from the 6.8 per cent prediction in April, according to the bank.

Inflation forecasts are revised down to 3.8 per cent from 4.5 per cent for 2023, and 4.0 per cent from 4.2 per cent for 2024.

While Vietnam's industrial production is shrinking due to falling global demand, other sectors are forecast to display healthy growth.

Services are expected to continue expanding, supported by a revival in tourism and the recovery of associated services.

Agriculture will benefit from rising food prices, and it is expected to expand by 3.2 per cent in 2023 and the next year.

The main forces impacting the economy have been the global economic slowdown, monetary tightening in some advanced countries, and the disruption caused by exacerbated geopolitical tensions, according to the bank.

ADB Country Director for Vietnam Shantanu Chakraborty said the Vietnamese economy remains resilient, and recovery is expected to pick up in the near term, driven by strong domestic consumption, which is supported by moderate inflation, an acceleration of public investment, and improved trade activities.