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.