The Asian Development Bank (ADB) has forecast Vietnam’s Gross Domestic Product at 6% for 2024, according to the Asian Development Outlook released on December 13.

ADB also lowered its growth forecast for Vietnam this year to 5.2% from the previous 5.8% forecast.

ADB experts pointed out that the weaker-than-expected recovery of external demand continued to impede industry and services output, thereby dragging the recovery of jobs and domestic consumption.

The prudent and proactive monetary policy, supported by effective price controls of gasoline, electricity, food, health care, and education, all contributed to containing inflation.

In line with this, the country’s inflation is projected to remain at 3.8% for this year before rising to 4% in 2024.

Think-tanks analysed that risks to the outlook include persistently elevated interest rates in the US and other advanced economies, a factor which could contribute to financial instability occurring in vulnerable economies around the region, especially those with high debt.

VNA