Vietnam's Q2 GDP growth to be 5.3% amid inflation: Standard Chartered

The country’s retail sales and export growth in June are expected to ease to 8.2 per cent and 14.2 per cent compared to 9.5 per cent and 15.8 per cent in May respectively, the bank’s economists noted.

Imports and industrial production in June this year are likely to grow by 26 per cent and 5.2 per cent compared to May’s 29.9 per cent and 8.9 per cent respectively.

Inflation in June may rise to 4.5 per cent from 4.4 per cent in May, thereby marking a third straight month when it has stayed above 4 per cent, a domestic media outlet reported.

“Despite the likely slowdown in the second quarter, we think Vietnam’s recovery remains intact. However, economic challenges could persist in the third quarter amid rising price pressures, foreign exchange weakness and soft global demand,” said Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered Bank.

The bank anticipates the country’s central bank to hike the refinancing rate by 50 basis points ahead in Q4 2024 in response to rising inflation.

ALCHEMPro News Desk (DS)