According to the ADB, Vietnam's economic growth this year is forecast to reach 7.5% while the economic growth of Asia - Pacific is 4.2% and ASEAN is 5.5%.

In its latest report, the Asian Development Bank (ADB) raised its forecast for Vietnam's economic growth to 7.5% this year while slightly lowering its growth forecast for Asia and the Pacific.

Specifically, ADB forecasts that the region's economy will grow 4.2% this year and 4.6% next year in the context of a deteriorating global outlook. Previously, in September, ADB had forecast the Asia-Pacific economy to grow 4.3% for 2022 and 4.9% next year, while for Vietnam, ADB forecast a growth rate of 6.5% in 2022.

According to the ADB, although Vietnam's economy is performing well in the context of global economic uncertainty, risks to the economic outlook are increasing. ADB raised Vietnam's economic growth forecast to 7.5% this year, inflation forecast in 2022 was revised down to 3.5%.

Regarding exports, while trade continues to grow, there are signs that global demand for Vietnam's exports is declining. Therefore, Vietnam's economic growth forecast in 2023 is revised down to 6.3% due to weakening of major trading partners.

Previously, the World Bank (WB) also raised its forecast for Vietnam's economic growth in 2022 to the highest level in the region, reaching 7.2% this year, instead of 5.3% as forecast in April. The overall growth rate of the Asia-Pacific region is expected to be 3.2%.

For the ASEAN region, the growth forecast is raised from 5.1% to 5.5%, in the context of a strong recovery in consumption and tourism in Malaysia, the Philippines, Thailand and Vietnam. However, ADB's ASEAN growth forecast for 2023 dropped from 5% to 4.7% due to weakening global demand.

“Asia and the Pacific will continue to recover, but worsening global conditions mean that the region’s momentum is losing some steam as we head into the new year. Governments will need to work together more closely to overcome the lingering challenges of COVID-19, combat the effects of high food and energy prices—especially on the poor and vulnerable—and ensure a sustainable, inclusive economic recovery.” said ADB chief economist Albert Park.

In addition, ADB has also lowered its inflation forecast for developing Asia and the Pacific from 4.5% to 4.4% this year. However, the bank raised its projection for next year from 4.0% to 4.2%, due to lingering inflationary pressures from energy and food prices.
 

Kylie Nguyen