WB raises Vietnam's economic growth forecast to 6.1% this year

08/26/2024 15:30 Nhat Linh Print article

ANTD.VN - Boosting public investment and closely monitoring the asset quality of banks due to increasing bad debt are recommendations made by WB experts.

The World Bank (WB) announced an update on Vietnam's economic situation on August 26, 2024. Accordingly, the report titled "Reaching new heights in the capital market", WB forecasts Vietnam's economy to grow by 6.1% in 2024 and 6.5% in 2025 and 2026, higher than the 5% in 2023.

This shows the resilience of the Vietnamese economy in the context of increasing global challenges.

Press conference to announce the report "Reaching new heights in capital markets" of the World Bank

Previously, in a report released in April 2024, the WB forecast that Vietnam's economic growth would only reach 5.5% in 2024 and gradually increase to 6.0% in 2025.

"In the first half of this year, Vietnam's economy benefited from the recovery in export demand. To maintain growth momentum from now until the end of the year and in the coming years, authorities need to continue institutional reforms, boost public investment, and manage and monitor risks in financial markets," said Sebastian Eckardt, Director of the Macroeconomics, Trade and Investment Department for the East Asia and Pacific region of the World Bank.

Similarly, Ms. Dorsati Madani, Senior Economist of the World Bank in Vietnam, said that the growth forecast of 6.1% is very positive, but the Vietnamese economy has not yet returned to its full potential.

After a strong recovery in the first half of 2024, Vietnam's economic growth rate will slow down in the coming time, affected by the slowing growth trend of major economies in the world such as the US, Europe and China.

Therefore, the WB report suggests that public investment should be boosted to both stimulate short-term demand and help address infrastructure shortages - especially in the energy, transport and logistics sectors - which are bottlenecks hindering growth. In addition, the report also suggests that banks' asset quality should be closely monitored due to rising bad debts.

Source: https://www.anninhthudo.vn/wb-nang-du-bao-tang-truong-kinh-te-viet-nam-len-61-trong-nam-nay-post587286.antd