HSBC upgrades Vietnam’s growth forecast to 6.9%
Vietnam's economy is predicted to grow by 6.9% this year, according to the latest Vietnam At A Glance report by HSBC. (Photo:
HSBC has raised its forecast for Vietnam’s economic growth this year to 6.9%, from the previous prediction of 6.6%, which is possibly the fastest pace in the region.
In the Vietnam At A Glance report in July, HSBC Global Research noted that decreasing risks posed by the Omicron variant and eased restrictions have paved the way for Vietnam to return to the normality.
Thanks to widespread recovery, the country recorded an impressive GDP growth rate of 7.7% in the second quarter compared to the same period last year. The service sector, which has suffered from severe economic impacts, have bounced back strongly while manufacturing has continued growing and exports hit historic highs.
However, the growth forecast for 2023 was revised down to 6.3% from 6.7% due to growing risks, especially in the energy sector, according to the bank.
HSBC Global Research pointed out growing impacts of soaring energy prices. Escalating goods prices have led to trade deficit in Q2 and may worsen the current account situation, which has not already been optimistic. On the other hand, though household consumption has recovered steadily, people’s budgets may suffer from high oil prices, thus decelerating the recent recovery speed.
Vietnam’s inflation is forecast to stand at about 3.5% this year, but it may surpass the ceiling of 4% between Q4 of 2022 and Q2 of 2023, requiring the State Bank of Vietnam begin normalising the monetary policy.
According to the report, Vietnam has benefited from economy reopening, and domestic demand has returned while external drivers remain favourable. However, it is necessary to stay alert to increasing growth risks, especially the ones posed by surging energy prices./.
Related News
Promoting Vietnam-Laos Customs cooperation
09:44 | 21/11/2024 Customs
Vietnam’s exports to the U.S. near US$100 billion milestone
09:46 | 21/11/2024 Import-Export
U.S. Treasury continues to affirm Vietnam does not manipulate currency
13:46 | 19/11/2024 Finance
Vietnamese passion fruit gets “great opportunities” to Australia
09:35 | 16/11/2024 Import-Export
Latest News
Vietnam's internet economy projected to hit 36 billion USD in 2024
13:51 | 22/11/2024 Headlines
Adapting to multicultural environments in global business
09:33 | 22/11/2024 Headlines
Vietnam resolved to boost digital economy with national action plan
14:25 | 21/11/2024 Headlines
NA Chairman departs for official visit to Cambodia
14:24 | 21/11/2024 Headlines
More News
Innovating gold market management mindset
09:48 | 21/11/2024 Headlines
Businesses need support from vietnamese representative offices abroad
14:48 | 20/11/2024 Headlines
Vietnam-Cambodia relations expected to enter new development period: official
14:42 | 20/11/2024 Headlines
Vietnam emerges as forerunner in global nearshoring trend
13:46 | 19/11/2024 Headlines
PM’s visit to Dominican Republic to cement ties
13:41 | 19/11/2024 Headlines
Top 500 Largest Enterprises in Vietnam in 2024: Affirming the ability to overcome "headwinds"
09:39 | 19/11/2024 Headlines
"Explosion" of aviation retail with new services
15:53 | 18/11/2024 Headlines
PM attends Vietnam-Brazil business forum in Rio de Janeiro
15:50 | 18/11/2024 Headlines
Party leader requests extra efforts to fulfill education, training reform goal
15:48 | 18/11/2024 Headlines
Your care
Vietnam's internet economy projected to hit 36 billion USD in 2024
13:51 | 22/11/2024 Headlines
Adapting to multicultural environments in global business
09:33 | 22/11/2024 Headlines
Vietnam resolved to boost digital economy with national action plan
14:25 | 21/11/2024 Headlines
NA Chairman departs for official visit to Cambodia
14:24 | 21/11/2024 Headlines
Innovating gold market management mindset
09:48 | 21/11/2024 Headlines