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ADB downgrades Vietnam's economic growth forecast to 5.8 pct in 2021

HANOI
2021-07-20 13:44

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HANOI, July 20 (Xinhua) -- The Asian Development Bank (ADB) has lowered its forecast of Vietnam's gross domestic product (GDP) growth to 5.8 percent in 2021 from the previous estimate of 6.7 percent in April, citing impacts of the COVID-19 pandemic.

The country's economic growth accelerated from 1.8 percent in the first half of 2020 to 5.6 percent in the same period this year as the global recovery from COVID-19 boosted export, despite the disruption caused by a new wave of COVID-19 that started in late April, the bank said in a report released Tuesday.

However, Vietnam's composite Purchasing Managers' Index, an indicator of economic health for manufacturing and service sectors, was down to 44.1 in June 2021, the lowest since May 2020.

Vaccination delays and extended lockdowns in the country's largest growth areas may restrict mobility and limit economic activity in 2021, the report said.

Vietnam's GDP grew 2.91 percent in 2020, the lowest growth reported over the past decade. A growth target of around 6 percent in 2021 was previously set by its top legislature.
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