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Vietnam’s Economy Expected to Grow 4.7% in 2023, Followed by 5.5% Growth in 2024, Says World Bank

According to a recent report from the World Bank, Vietnam’s economy is projected to experience a growth rate of 4.7% in 2023, primarily due to weaker external and domestic demand. However, the outlook for the Vietnamese economy remains optimistic, with an anticipated recovery and growth of 5.5% in 2024 and 6% in 2025.

The report, known as Vietnam’s Macro and Poverty Outlook (MPO), emphasizes that domestic demand within Vietnam is expected to serve as the primary driver of economic growth in the current year, although this expansion may be slightly slower compared to the previous year.

In terms of inflation, the World Bank’s projections suggest an average of 3.5% for this year, primarily due to anticipated increases in government salaries. In the subsequent years of 2024 and 2025, inflation is expected to decrease to 3.0%, provided that commodity and energy prices remain stable.

However, it is worth noting that the Asian Development Bank (ADB) recently revised its GDP growth forecast for Vietnam in 2023 to 5.8%, down from its previous estimate of 6.5% in April.

Conversely, United Overseas Bank (UOB) maintains a slightly more conservative but steady economic growth forecast for Vietnam. UOB’s projection indicates a growth rate of 5.2% for 2023, followed by an expected growth of 6% in 2024. These forecasts suggest continued economic resilience and stability in Vietnam in the coming years.

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