The Asian Development Bank (ADB) has revised up its growth forecasts for Vietnam from 6.8 percent to 6.9 percent for 2019 and from 6.7 percent to 6.8 percent for 2020. (Photo: VNA) Hanoi (VNA) - The Asian DevelopmentBank (ADB) has revised up its growth forecasts for Vietnam from 6.8 percent to 6.9 percent for 2019 and from 6.7 percent to 6.8 percent for 2020 whiletrimming its predictions in developing Asia as growth in China and India isweighed down by both external and domestic factors.
In a supplement to its Asian Development Outlook2019 Update released in September, ADB now expectsgross domestic product (GDP) in the region to expand 5.2 percent in both 2019and 2020, down from the September forecast of 5.4 percent growth this year and5.5 percent next year.
In East Asia, growth in China is now expected at 6.1percent this year and 5.8 percent next year, lower than the forecasts of 6.2percent and 6.0 percent in September, due to trade tensions and a slowdown inglobal activity coupled with weaker domestic demand, with family wallets beinghit by pork prices that have doubled relative to a year ago. Growth couldaccelerate, however, should the US and the China come to an agreement on trade, the report says.
“While growth rates are still solid in developingAsia, persistent trade tensions have taken a toll on the region and are stillthe biggest risk to the longer-term economic outlook. Domestic investment isalso weakening in many countries, as business sentiment has declined,” said ADB Chief Economist Mr. Yasuyuki Sawada.
InSouth Asia, India’s growth is now seen at a slower 5.1 percent in fiscal year2019 as thefoundering of a major nonbanking financial company in 2018 led to a rise inrisk aversion in the financial sector and a credit crunch. Also, consumption was affected by slow job growth andrural distress aggravated by a poor harvest. Growth should pick upto 6.5 percent in fiscal year 2020 with supportive policies. In September, ADB forecastIndia’s GDP to grow 6.5 percent in 2019 and 7.2 percent in 2020.
In Southeast Asia,many countries are seeing continued export declines and weaker investment, andgrowth forecasts have been downgraded for Singapore and Thailand./.
VNA
