HANOI (Xinhua): The Singapore-based United Overseas Bank (UOB) has forecast that Vietnam's gross domestic product (GDP) growth will reach seven per cent in 2025, following a strong momentum from 2024, local media has reported.
The bank expects positive momentum from domestic drivers such as production, consumer spending and visitor arrivals to contribute to the activities, especially in the first half.
However, uncertainty will be a major risk for Vietnam in the second half, with its rising dependence on exports, which have grown to a record high of more than US$400 billion in 2024, about the size of Vietnam's nominal GDP of US$450 billion, said the UOB.
The bank also anticipates that with overall and core inflation staying below the official target of 4.5 per cent for most of 2024, particularly towards the later part of the year, this has opened up the possibility for the State Bank of Vietnam to ease monetary policy.
According to the General Statistics Office, Vietnam posted a 7.09 per cent GDP growth in 2024, driven by services and industrial production. - Xinhua
