ADB raises Vietnamese GDP growth forecast to 2.3% this year

The report also saw ADB economists revise the country’s GDP growth forecast down slightly to 6.1% for next year, noting that the Vietnamese inflation rate is set to rise to 3.5% from 3.3% this year.

In terms of Southeast Asia, economic growth remains challenging due to continued novel coronavirus (COVID-19) outbreaks and containment measures, particularly those occurring in Indonesia, Malaysia, and the Philippines.

The subregion’s growth forecast for the year has been revised down to -4.4% from -3.8% in September, while the outlook ahead for 2021 has also been downgraded, with Southeast Asia now anticipated to enjoy growth of 5.2% moving into next year, as opposed to the 5.5% growth that was previously forecast in September, according to the ADB.

Most notably, economic activity in developing Asian countries is forecast to contract by 0.4% during the course of the year, before witnessing growth of 6.8% in 2021 as the region moves towards recovery following the negative impact of the COVID-19 pandemic.

The latest growth forecast represents an improvement from the -0.7% GDP growth forecast that was previously made back in September, although the outlook ahead for 2021 remains unchanged.

“The outlook for developing Asia is showing improvement. Growth projections have been upgraded for China and India, the region’s two largest economies,” said Yasuyuki Sawada, chief economist of ADB.

“A prolonged pandemic remains the primary risk, but recent developments on the vaccine front are tempering this. Safe, effective, and timely vaccine delivery in developing economies will be critical to support the reopening of economies and the recovery of growth in the region,” Sawada added.