Vietnam’s GDP growth is projected to grow seven percent this year, taking the lead among the group of five emerging markets in Southeast Asia, according to the International Monetary Fund (IMF)’s 'World Economic Outlook' report for October.
The IMF’s report, published on Tuesday, outlines that Asia’s GDP will grow four percent this year, in comparison to 6.5 percent last year.
This represents the fourth time that the major financial agency of the United Nations has lowered its economic growth forecast for the region amid global instability as several major economies, such as Europe, the United States, and China, have experienced high inflation coupled with an economic growth slowdown.
Emerging and developing Asian economies are forecast to expand 4.4 percent this year, representing a drop of 0.2 percentage points compared to the IMF’s projection in July.
The cut largely reflects a downgrade for growth in China to 3.2 percent this year from an 8.1-percent expansion in 2021, the IMF said.
However, the IMF described Vietnam as a bright spot in the regional economy, forecasting its GDP growth will reach seven percent this year, higher than its previous projection of six percent and the highest among the ASEAN-5 group that includes Vietnam, Indonesia, Malaysia, the Philippines, and Thailand.
The four remaining countries in the ASEAN-5 are predicted to post a GDP growth rate of 5.3 percent, 5.4 percent, 6.5 percent, and 2.8 percent, respectively.
The whole group is expected to expand 5.3 percent this year from growth of 3.4 percent in 2021, the IMF report said.
The economic growth of Vietnam and the ASEAN-5 are both projected to slow to 6.2 percent and 4.9 percent next year, respectively.
The fund also expects India’s economy to grow 6.8 percent this year, down 0.6 points from its previous projection.
The expansion forecast for other emerging and developing Asian economies this year is 3.7 percent.