UBO revises up Vietnam’s 2022 GDP growth forecast to 7%
(VOVWORLD) - Singapore-based United Overseas Bank (UOB) has revised up Vietnam’s 2022 GDP growth forecast to 7% from 6.5%, assuming no further severe domestic disruptions from COVID-19.
 Production of electronic parts in Vietnam. (Photo: VNA) |
According to the bank, Vietnam’s real GDP growth surprised in Q2, expanding 7.7% year-on-year, surpassing the UOB’s estimate of 6%.
The sharp rebound in Q2 GDP was driven by manufacturing activities which accelerated for the 4th straight quarter, and a recovery in services output as it continued to regain its footing since the last contraction in the third quarter of last year, the UOB said.
It added that inflationary pressures on Vietnam are manageable as the main source of impact is energy related while food prices are stable. However, upside risks are significant given the rapid pace of gains in energy prices which will eventually spread to the rest of the economy, especially if higher prices persist.