HANOI, Sept 26 (NNN-VNA) – Despite a weaker external environment, Vietnam is forecast to maintain economic growth this year and next year at 6.8 percent and 6.7 percent, respectively, the Asian Development Bank (ADB) said.
In its Asian Development Outlook 2019 Update, ADB kept its forecast for Vietnam’s gross domestic product (GDP) growth unchanged, but revised down projection for Vietnam’s inflation to three, from 3.5 percent for 2019, and to 3.5 percent from 3.8 percent for 2020.
In spite of a slowdown in export growth and downturn in global trade, the Vietnamese economy remains healthy, thanks to continued strength in domestic demand and sustained inflows of foreign direct investment, according to ADB country director for Vietnam, Eric Sidgwick.
“Prospects for domestic consumption continues to be positive, supported by rising incomes, buoyant employment, and moderate inflation,” Sidgwick was quoted in a press release, by the ADB in Vietnam.
According to the World Bank, Vietnam’s real GDP growth for 2019 is likely to decelerate to 6.6 percent, driven by a weaker external demand and continued tightening of credit and fiscal policies. Inflation indexes are meant to be kept below the official inflation target of four percent this year.
Vietnam made GDP growth of 7.08 percent in 2018, the highest rate over the past 10 years, up from the annualised target of 6.5-6.7 percent, the country’s General Statistics Office, announced.– NNN-VNA