ADB Revises up Vietnam’s GDP Growth at 2.3%

According to Asian Development Outlook (ADO) 2020 report by Asian Development Bank (ADB), Vietnam's economy grew rapidly from 0.4% in the second quarter of 2020 to 2.6% in the third quarter, raising the average growth in the period from January to September to 2.1%. The growth forecast for 2020 is adjusted to increase from 1.8% to 2.3%, due to boosting public investment, recovery in domestic consumption, and increased trade.

Economic growth in Southeast Asia remains under pressure as COVID-19 outbreaks and containment measures continue, especially in Indonesia, Malaysia and the Philippines. The sub region's growth outlook for 2020 has been revised downward from negative (-) 3.8% in September to negative (-) 4.4%. The sub region's outlook for 2021 has also been revised downward, with Southeast Asia now expected to grow by 5.2% next year, compared to a forecast of 5.5% in September.

The inflation in the region is expected to drop slightly to 2.8% in 2020, compared to a forecast of 2.9% in September, due to curbed demand and lower oil prices. The inflation for 2021 is projected at 1.9%, down from the forecast of 2.3% in September. Oil prices will remain at US$ 42.5/barrel in 2020, before increasing to US$50/barrel in 2021.

By Lan Anh, Vietnam Business Forum