Illustrative photo (Photo: VNA)

Hanoi (VNA) - The Economist Intelligence Unit (EIU)- an independent business within The Economist Group forecasted an upbeat prospect for Vietnam’s economy with a gross domestic product growth rate expected to stand at 6.8 percent in 2016.

The EIU’s prognosis was spurred by Vietnam’s rational inflation rate level. The EIU said that a reduction of inflationary pressure will create favourable conditions for Vietnam to carry out numerous monetary and financial policies.

In addition, Vietnam will see vibrant investment activities in the year. Additional capital flow will pour into the country thanks to the various free trade agreements (FTAs) negotiated throughout 2015, according to the EIU.

The EIU also predicted that the Southeast Asian region will be one of the regions with the fastest economic growth worldwide. ASEAN member states’ average GDP growth rate is expected to rise up to 4.6 percent from 4.3 percent in 2015.

Vietnam and the Philippines will enjoy impressive growth of more than 6 percent this year. Indonesia and Malaysia’s GDP growth rates are expected at 4-5 percent while Thailand and Singapore are likely to face difficulties with slow growth.-VNA