ADB lowers 2023 growth forecast for Vietnam to 5.2 percent

The lender projected Vietnam's GDP growth at 6 percent for 2024. ADB attributed the weaker-than-expected recovery of external demand to impeding industry and service output, thereby dragging down the recovery of jobs and domestic consumption.

The inflation rate was predicted at 3.8 percent for this year before accelerating to 4 percent in 2024.

ADB attributed the risks to the forecast to interest rate hikes in the United States and other advanced economies, a factor that could contribute to financial instability in weak economies around the region, particularly those with heavy debt.

El Nino weather patterns and the Russia-Ukraine conflict may potentially cause supply disruptions that spark inflation, especially when it comes to food and energy.

Previously, IMF analysts maintained their prediction for Vietnam's GDP growth at 4.7 percent in 2023 but voiced optimism about the medium-term prospects, with GDP growth anticipated to reach 5.8 percent in 2024 and 6.9 percent in 2025.

The WB forecasted that Vietnam’s economy would grow 4.7 percent in 2023, and accelerate to 5.5 percent in 2024 and 6.0 percent in 2025.