ADB projects Vietnam’s 2024 GDP growth at 6% (Photo: VNA) Hanoi (VNA) - The Asian Development Bank (ADB) has forecast Vietnam's GrossDomestic Product (GDP) at 6% for 2024, according to the Asian Development Outlook (ADO) released onDecember 13.
Thebank also lowered its growth forecast for Vietnam this year to 5.2% from theprevious 5.8% forecast.
ADBexperts pointed out that the weaker-than-expected recovery of external demandcontinued to impede industry and services output, thereby dragging the recoveryof jobs and domestic consumption.
Theprudent and proactive monetary policy, supported by effective price controls ofgasoline, electricity, food, health care, and education, all contributed tocontaining inflation.
Processing pangasius and basa fish at Navico Nam Viet Company (NAVICO) in Long Xuyen City, An Giang. (Photo: VNA) Inline with this, the country’s inflation is projected to remain at 3.8% forthis year before rising to 4% in 2024.
Think-tanksanalysed that risks to the outlook include persistently elevated interest ratesin the US and other advanced economies, a factor which could contribute tofinancial instability occurring in vulnerable economies around the region,especially those with high debt.
Furthermore,potential supply disruptions caused by the El Nino weather pattern or theRussia-Ukraine conflict could also rekindle inflation, particularly with regardto food and energy.
Meanwhile,the ADB raised its economic forecast for developing economies in Asia and thePacific, following robust domestic demand which has been driven byhigher-than-expected growth in China and India.
Theregional economy is therefore expected to grow by 4.9% this year, compared witha previous forecast of 4.7% in September.
AlbertPark, ADB chief economist, said that developing Asia continues to grow at arobust pace, despite facing a challenging global environment, adding thatinflation in the region is also gradually coming under control.
However,he pointed out several risks, including elevated global interest rates andclimate events such as El Nino, and advised governments in Asia and the Pacificto stay vigilant in order to ensure that their economies are resilient and thatgrowth is sustainable.
Accordingto figures given by economists, the growth outlook for Southeast Asia this yearwas lowered to 4.3% from 4.6% amid weak demand for manufacturing exports./.
