ADB says Vietnam’s economy grows faster than expected

The revision came after the recent strong momentum of the thriving Southeast Asian economy.

The country’s strong GDP growth in the first 3 quarters of 2019 accelerated to 7.0%, the highest rate for the period in the past 9 years.

The private consumption rose by 7.3%, and investment expanded by 7.7%, boosted by an improved business environment, continued investor confidence, and increased foreign direct investment, it says by statement on website.

With unexpectedly strong growth in Q3 likely to carry over into Q4 and next year, the Vietnam’s growth forecast for 2020 was adjusted to 6.8% from 6.7%.

The Vietnam forecast is in contrast to the rest of Asia.

Southeast Asia’s growth forecast is revised down slightly to 4.4% for 2019, as economic weakening in Singapore and Thailand prompts downward adjustments to their growth forecasts.

Projected sub-regional growth in 2020 is maintained at 4.7% due to persistent trade tensions and weakening domestic investment.

ADB revises Vietnam's 2019 economic growth to 6.9%. Source: Asian Development Bank

Inflation forecasts for this year are unchanged for Indonesia, Malaysia, Myanmar, the Philippines, and Viet Nam but raised for the Lao People’s Democratic Republic largely because bad weather hit agricultural production and pushed domestic food prices higher than expected.

Deflation resumed in Brunei Darussalam with unanticipated price declines for transportation, clothing, and footwear.

Downgrades are made for four economies—Brunei Darussalam, Cambodia, Singapore, and Thailand—in light of unexpectedly low oil prices and subdued domestic food prices.

Source: ADB