HANOI: Vietnam's economy is projected to grow by 6.7 per cent in 2025, according to Standard Chartered's latest macroeconomic update.
Growth is expected to moderate from 7.5 per cent year-on-year in the first half of this year (H1) to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment, Vietnam News cited the forecast on Monday (Feb 10).
Tim Leelahaphan, senior economist for Thailand and Vietnam, Standard Chartered Bank, said the government's focus for stronger economic growth may support low interest rates in the near term.
"However, we anticipate rate normalisation in Q2, with the State Bank of Vietnam expected to hike rates by 50bps in Q2, 2025. With inflation dynamics, Fed policies, and the performance of the Vietnamese dong playing a key role, the central bank's monetary policy decisions will be crucial in maintaining economic stability and growth in 2025," he said.
In 2024, Vietnam posed a gross domestic product growth of 7.09 per cent. The government has targeted at least 8 per cent growth this year. - Xinhua
