Business

Bank lowers Vietnam’s GDP growth forecast

The United Overseas Bank (UOB) has lowered its 2023 economic growth forecast for Vietnam from 6.6% to 6% due to a low base in the first quarter (Q1) of this year.
Bank lowers Vietnam’s GDP growth forecast ảnh 1The United Overseas Bank lowers Vietnam’s GDP growth forecast. (Photo: VNA)

Ho Chi Minh City (VNA) – The United Overseas Bank (UOB) has lowered its 2023 economic growth forecast for Vietnam from 6.6% to 6% due to a low base in the first quarter (Q1) of this year.

In the latest economic growth in Q1/2023 report of Vietnam, the bank said that the country's GDP growth in the period only increased 3.32% year on year, a sharp fall from 5.92% in Q4/2022.

Based on statistics from the General Statistics Office (GSO), it attributed the fall to negative factors in production and export.

The bank’s experts said inflation in Vietnam has shown positive signs as consumer price index (CPI) in Q1/2023 rose 4.18% compared to the same period last year and lower than the 4.5% target set by the government.

Vietnam's March CPI rose 3.35% year-on-year but declined 0.23% compared to February, indicating a slower pace in inflation.

The UOB also predicted that further loosened polices will be introduced by the State Bank of Vietnam (SBV) in the coming time.

As the US Fed is expected to end its rate hike cycle as soon as May this year and domestic inflation rates are showing some signs of reversing, the bank anticipated that the SBV will cut its refinance rate sometime in the second quarter by 100bps to 5%./.

VNA
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