HSBC lowers Vietnam's 2022 GDP rate projection to 6.2% from 6.5%

05 Apr '22

2 min read

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The Hong Kong & Shanghai Banking Corporation (HSBC) recently lowered Vietnam’s gross domestic product (GDP) growth rate for 2022 from the previously projected 6.5 per cent to 6.2 per cent amid fears of rising oil prices globally. It also raised the country’s inflation for this year to 3.7 per cent, which is below the 4 per cent target set earlier by the State Bank of Vietnam.

However, the country remains likely to be one of those recording the highest growth rate throughout the region, the bank said.

In the year ahead, HSBC noted that Vietnam has enjoyed a good start with GDP in the first quarter growing steadily at 5 per cent year on year, a figure which is higher than the bank’s 4.7 per cent projection. This means the country’s economic recovery is on track and is gathering full steam.

The bank attributed strong Vietnamese recovery momentum in the first quarter to internal and external growth pillars, according to Vietnamese media reports.

Rising fuel prices would also fuel living costs and slow down personal consumption recovery, especially when the local labour market has begun to show signs of gathering momentum, the bank said.

However, HSBC analysts suggested that the government tighten its monetary policy to ease pressure on inflation.

ALCHEMPro News Desk (DS)

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