Vietnam's economy will grow 6.9 percent this year, compared with the rate of 7.1 percent projected in April, according to the forecast of the Asian Development Bank (ADB) in its Asian Development Outlook 2018 Update released here on Wednesday.
"With growth moderation likely in the second half of the year for exports, agriculture, and construction, and with continued contraction in mining, GDP growth for the whole year is now seen slightly lower than earlier forecast," said the ADB report.
As inflation is on an upward trend and unlikely to change course in the near term, inflation forecast for this year is revised up to 4 percent from the previous 3.7 percent. Forecast for the current account surplus is revised down to the equivalent of 2.3 percent of GDP this year.
Growth moderation in some big markets, including the European Union and Japan, could dent export opportunities for Vietnam, according to the ADB.
Vietnam's agriculture should post slower growth at 2.5 percent this year, below the earlier forecast and the government target of 3 percent, following severe floods in recent months. Mining output, which contracted by 1.3 percent in the first half of the year, continues to be handicapped by aging mines, oil fields, and unfavorable weather conditions.
The bank's latest forecast for Vietnam's GDP growth next year is retained at 6.8 percent, while inflation forecast is adjusted upward from 4 percent to 4.5 percent.
Vietnam's GDP is likely to expand 6.83 percent in 2018, according to the country's National Center for Socioeconomic Information and Forecast. Its GDP growth was estimated by the center under the Ministry of Planning and Investment to stand at 6.72 percent in the third quarter of this year, and 6.56 percent in the fourth quarter.
Vietnam gained GDP growth of 7.08 percent in the first half of this year, the highest first-half growth rate since 2011. The country's top legislature has targeted GDP growth of 6.5-6.7 percent in 2018, compared with 6.81 percent in 2017.
"With growth moderation likely in the second half of the year for exports, agriculture, and construction, and with continued contraction in mining, GDP growth for the whole year is now seen slightly lower than earlier forecast," said the ADB report.
As inflation is on an upward trend and unlikely to change course in the near term, inflation forecast for this year is revised up to 4 percent from the previous 3.7 percent. Forecast for the current account surplus is revised down to the equivalent of 2.3 percent of GDP this year.
Growth moderation in some big markets, including the European Union and Japan, could dent export opportunities for Vietnam, according to the ADB.
Vietnam's agriculture should post slower growth at 2.5 percent this year, below the earlier forecast and the government target of 3 percent, following severe floods in recent months. Mining output, which contracted by 1.3 percent in the first half of the year, continues to be handicapped by aging mines, oil fields, and unfavorable weather conditions.
The bank's latest forecast for Vietnam's GDP growth next year is retained at 6.8 percent, while inflation forecast is adjusted upward from 4 percent to 4.5 percent.
Vietnam's GDP is likely to expand 6.83 percent in 2018, according to the country's National Center for Socioeconomic Information and Forecast. Its GDP growth was estimated by the center under the Ministry of Planning and Investment to stand at 6.72 percent in the third quarter of this year, and 6.56 percent in the fourth quarter.
Vietnam gained GDP growth of 7.08 percent in the first half of this year, the highest first-half growth rate since 2011. The country's top legislature has targeted GDP growth of 6.5-6.7 percent in 2018, compared with 6.81 percent in 2017.
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