Based upon expanded growth throughout this year and optimistic forecasts for 2020, the Asian Development Bank (ADB) increased its growth projections for Vietnam in 2019 to 6.9% and 2020 to 6.8%, from earlier projections of 6.8% and 6.7% growth.
ADB’s new predictions were an upgrade to the numbers it had previously unveiled in the September edition of its Asian Development Outlook Supplement. The ADB attributed the 0.1% increase to unexpectedly strong growth that was driven by exports.
The ADB also noted that Vietnam’s GDP growth in the first three quarters of 2019 accelerated to seven percent, its highest rate for the period in nine years.
According to the ADB’s analysis, private consumption from Q1 to Q3 rose by 7.3%, while investment expanded by 7.7% lead by the three key factors of: a steadily improving business environment; continued investor confidence; and increased foreign direct investment
The ADB sad that it also expects that the strong growth in the economy that has been shown this year, will continue in Q4 – 2019, and will continue throughout 2020, so the bank adjusted its growth forecast from 6.7% to 6.8% for 2020.
While Vietnam’s economic growth looks very positive, the ADB said that its inflation forecasts for 2019 and 2020 remain as previously reported, with 2019 inflation forecast at 3.9% and 2020’s inflation rate forecast at 3.5%.
The ADB also forecast that overall Southeast Asia growth will be at a moderate level, since domestic investment growth is challenging in several markets and as the US-China trade war takes a toll on global trade growth rates. Many companies are slowing their investment until a US-China trade deal is completed and until that agreement is concluded a variety of industries will be impacted.
Overall, the ADB says that the region’s gross domestic product (GDP) is forecast to expand by 5.2% in both 2019 and 2020, which is a downgrade of the banks forecast as published in its September’s Asian Development Outlook 2019.
To read the Asian Development Bank’s “Development Outlook 2019” report … CLICK HERE!!