Forecasts on Vietnam’s economic growth grounded: Sputnik

Illustrative image (Photo: VNA)

Financial institutions and the world’s top credit rating agencies’ forecasts on Vietnam’s economic growth are completely founded, said Russia’s Sputnik radio.

The World Bank, International Monetary Fund, Moody’s, Fitch, Standard & Poor's, Singapore’s United Overseas Bank (UOB) or the UK’s Standard Chartered Bank offered optimistic opinions about the Vietnamese economy amid the dull economic landscape all over the world.

In the Asia Economic Outlook released by the IMF on October 11, Vietnam’s gross domestic product is forecast to grow by 7% this year. While one-third of the world economies are predicted to contract, this growth is considered a miracle.

Though the WB revised down Vietnam’s economic growth to 7.2% from 7.5%, it highlighted that the figure remains high amid the global slowdown.

The lender attributed that to the country’s strong recovery and solid manufacturing and processing activities.

Meanwhile, Standard Chartered upgraded Vietnam’s growth outlook to 7.5% from 6.7%, saying that the figure could reach 7-7.2% next year.

The UOB offered a prediction of 8.2% growth this year while Moody’s was the most optimistic with 8.5%.

In September, Moody’s Investors Service upgraded Vietnam’s long-term issuer and senior unsecured ratings to Ba2 from Ba3 and changed the outlook to stable from positive. Vietnam is the only country in Asia-Pacific and one of the four countries in the world to have ratings upgraded by Moody’s since early this year, showing that its economy has growing strengths and greater resilience to external macroeconomic shocks that are indicative of improved policy effectiveness./.