ADB raises Vietnam economic growth forecast

According to the Asian Development Outlook (ADO) report released by the Asian Development Bank (ADB) this morning (December 11), Vietnam's growth forecast has been adjusted up to 6.4% compared to the previous forecast of 6% in 2024 and up to 6.6% compared to the forecast of 6.2% in 2025.

Stronger-than-expected trade activity, a strong recovery in manufacturing exports and continued fiscal support measures have boosted economic growth.

“ Amid growing external headwinds, boosting public investment and supporting fiscal and monetary policies are necessary measures to further stimulate domestic demand ,” the report recommended.

Also in the latest edition of the ADO report, ADB forecasts continued stable economic growth in Asia and the Pacific this year and next. Developing Asia and the Pacific economies are expected to grow 4.9% in 2024, slightly lower than the ADB's September forecast of 5.0%.

ADB raises Vietnam's economic growth forecast for 2024 to 6.4%. (Illustration photo).

The growth forecast for next year is cut to 4.8% from 4.9%, largely due to weaker domestic demand prospects in South Asia. The region’s inflation forecast is cut to 2.7% from 2.8% this year and to 2.6% next year from 2.9%, partly due to expected modest declines in oil prices.

In the report, ADB said that expected US policy changes under the incoming administration of President-elect Donald Trump could impact the region's long-term prospects.

Changes in the world's largest economy's trade, fiscal and immigration policies could slow growth and raise inflation in the developing Asia-Pacific region.

ADB said that because these significant changes are expected to take time and be implemented gradually, the impact on the region is likely to take place from 2026.

In the short term, the outlook for most economies in the region remains relatively stable. China’s economic growth forecast remains unchanged at 4.8% this year and 4.5% next year.

India's outlook was revised down from 7.0% to 6.5% this year and from 7.2% to 7.0% next year, due to lower-than-expected private investment growth and housing demand.

Southeast Asia’s growth outlook for this year was raised to 4.7% from a previous forecast of 4.5%, driven by stronger manufacturing exports and public investment spending. The forecast for next year was kept unchanged at 4.7%.

Ngoc Vy

Source: https://vtcnews.vn/adb-nang-du-bao-tang-truong-kinh-te-viet-nam-ar912897.html