Strong economic recovery will be seen in the latter half of the year, especially since the tourism sector has reopened after two years of restrictions.
Economists at the bank also projected the State Bank of Vietnam will keep the interest rate at 4% this year to aid businesses and the recovery process despite growing inflation. Retail sales have also continued improving, recording 30.2% growth in July, compared to 27.3% in June.
Economists at the bank also projected that the State Bank of Vietnam will keep the interest rate at 4% this year to assist businesses and the recovery process despite growing inflation. Retail sales will continue improving strongly, with 30.2% in July, compared to 27.3% in June.
Imports, exports and industrial production are predicted to respectively increase by 22.2%, 20% and 15% in July, compared to 20%, 16.3% and 11.5% in June. Meanwhile, Vietnam is likely to record a trade deficit this month, they said.
In flation will accelerate to 3.6% in July from 3.4% in June - the fastest pace in two years, mostly due to supply pressure while demand is also gradually increasing, Leelahaphan noted, adding that inflation is still under control at present.
Recently, HSBC raised Vietnam’s growth outlook this year to 6.9% from the previous prediction of 6.6% but also downgraded the forecast for 2023 to 6.3% from 6.7%.
