Vietnam's economic growth to stand at 6.5% in 2023, 6.8% in 2024: ADB
06 Apr 23 2 min read
Insights
- Vietnam's economic growth is expected to moderate to 6.5 per cent in 2023, before expanding to 6.8 per cent in 2024.
- Public investment is expected to be a key driver for economic recovery and growth in 2023 and 2024.
- Vietnam's growth support policy with monetary easing, public investment, and the reopening of China will help counter these headwinds.
The global economic slowdown deepened in the fourth quarter of 2022 and will likely continue in 2023. Falling global demand is expected to weigh on industrial growth, according to the Asian Development Outlook (ADO) April 2023.
Public investment will be another key driver for economic recovery and growth in 2023 and 2024, spurring economic activities. Along with the move to monetary easing in March 2023, public spending is expected to generate substantial multiplier effects, creating strong growth stimulus for the economy.
The prolonged pandemic exposed structural issues that are among the main downside risks to the economy. Domestic capital markets come under pressure. Although the market turbulence has not yet caused serious systemic risks due to banks’ resilience, risks are becoming evident. In the long term, financial sector reforms should be sustained to reduce the dependence of the economy on bank finance and enhance transparency in capital markets.
- Growth in South Asia projected to slow to 6.2% in 2024: World Bank
- India’s Apr IIP 147.7; IIP growth rate 5% YoY; manufacturing IIP 144.2
- April sees notable increase in garment prices in US: Cotton Inc
- UOB projects 6% GDP growth for Vietnam in 2024, 6.4% in 2025
- Global economic stability expected in 2024: World Bank
- No MoM growth in UK real GDP in Apr 2024; 0.6% YoY growth: ONS
“Vietnam’s economic growth will be constrained in 2023 by the global economic slowdown, continued monetary tightening in advanced economies, and spill-over from global geopolitical tensions,” said ADB country director for Vietnam Andrew Jeffries. “However, Vietnam’s growth support policy with monetary easing, a large amount of public investment to be disbursed in 2023, and the reopening of China will help the country counter these headwinds.”
Fibre2Fashion News Desk (NB)
Popular News
|
ICE cotton down as strong dollar, good crop conditions weigh on market |
|
Brazilian cotton exports soar 238% in Jan-Apr, driven by China surge |
|
US biz investment beating expectations in post-COVID expansion: Govt |
|
Middle East apparel imports rise despite Israel-Palestine conflict |
|
From FY12 to FY23/24: India's statistical indices to get an update? |
|
India exempts polyester fibre, yarn imports for export use from QCO |