Standard Chartered revises down Vietnam's 2024 growth forecast to 6%

25 Apr '24

2 min read

Standard Chartered revises down Vietnam's 2024 growth forecast to 6%

Pic: Adobe Stock

Insights

Standard Chartered Bank has revised down Vietnam's 2024 GDP growth forecast to 6 per cent from 6.7 per cent due to lower-than-expected Q1 growth and global trade headwinds, its recent macro-economic update on the nation said.
It also lowered the growth forecast in Q2 and Q3 2024 to 5.3 per cent and 6 per cent from 6.3 per cent and 7.2 per cent respectively.

Standard Chartered Bank recently revised down Vietnam’s 2024 gross domestic product (GDP) growth forecast to 6 per cent from 6.7 per cent earlier due to lower-than-expected growth in the first quarter (Q1) and global trade headwinds, according to its recent macro-economic update on the nation.

It also lowered the growth forecast in Q2 and Q3 2024 to 5.3 per cent and 6 per cent from 6.3 per cent and 7.2 per cent respectively, while the Q4 growth is expected to be 6.7 per cent.

The GDP growth was 5.7 per cent in Q1 this year compared to 6.7 per cent in Q4 last year. It was 5 per cent last year.

Trade is a key source of growth and investment, despite short- and long-term challenges, the bank’s economists feel. Vietnam’s recovery, however, remains intact despite risks. Retail sales growth was robust in the first quarter of the year.

Standard Chartered also lowered its 2024 inflation forecast to 4.3 per cent from 5.5 per cent to reflect lower-than-expected inflation in the first quarter.

A top economist at the bank said Vietnam is improving its position in global supply chains and continues to attarct foreign investment, a domestic media outlet reported.

With economic recovery gaining momentum, the bank thinks there will be less need to provide monetary policy support.

The bank forecasts a current account surplus of 3.5 per cent of GDP in 2024.

ALCHEMPro News Desk (DS)

More Textiles News - Vietnam...