Vietnam's GDP growth this year has been predicted at 5.3 percent by the WB. (Photo: VNA) The projection was made inthe WB’s East Asia and PacificEconomic Update, April 2022 titled “Bravingthe Storms” that was launched virtually on April 5.
East Asia andPacific Chief Economist Aaditya Mattoo said Vietnam is one of the economiesthat the WB has strongly downgraded forecasts for growth indicators.
Though the predictionhas been revised down to 5.3 percent, it is just the baseline scenario. The growthcould stand at only 4 percent in the lower-case scenario.
Explaining the revision, hepointed to the difficulties caused by the Omicron variant of the COVID-19 pandemic, which has led to asurge in infections; considerable impacts of oil import which is equivalent to3 percent of the GDP; and higher import prices of other materials like iron and steel.
Though Vietnam was recognisedas one of the countries that have gained the most advantages and made the mostuse of opportunities to expand trade, that fact has also made it morevulnerable to external shocks. This means the country needs to be moresuccessful in building and completing its social security system, according tothe economist.
In its economic update, theWB predicted overall economic growth for East Asia and the Pacific at 5percent in 2022, 0.4 of a percentage point less than expected in October. If global conditions worsen and national policy responses are weak, growthcould slow to 4 percent.
It said the war in Ukraine threatens the unevenrecovery of developing East Asia and Pacific countries from the COVID-19 shock./.
VNA
