HCMC – Standard Chartered has revised down its forecast for Vietnam’s gross domestic product (GDP) growth this year from 6.5% to 4.7%.
The country’s GDP in 2022 was predicted to expand 7%, lower than the 7.3% projected earlier, the local media reported.
Due to low economic indicators, the serious developments of the Covid-19 pandemic and slow Covid-19 vaccination, Standard Chartered has revised down its forecast for the country’s economic growth three times this year, from 7.8% to 6.7%, then 6.5% and now 4.7%.
According to the bank, if the pandemic is not brought under control this month, the country’s economic growth will be dragged even lower.
The global economy, which may recover in the last quarter of the year, and the improved global trade may support Vietnam’s import-export activities.
Standard Chartered forecast the pandemic would send investment in Vietnam down until the end of the year and negatively affect the tourism sector.
Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered, said Vietnam had been facing the brunt of the pandemic. However, Standard Chartered still maintains its positive outlook on the country’s economic growth.
According to the General Statistics Office, Vietnam’s index of industrial production, one of the key pillars of economic growth, in August dropped 4.2% month-on-month and 7.4% year-on-year, the steepest decline since early this year, except for February with the eight-day Tet holiday.