Vietnam’s GDP growth to reach 6.7% in 2022: Standard Chartered

Friday, 29/07/2022 01:00
Standard Chartered has forecast that Vietnam’s GDP growth will reach 10.8% in the third quarter and 3.9% in the last quarter of 2022, contributing to annual expansion of 6.7%.

Photo for illustration. (Source: VNA)

Retail sales growth is forecast to continue to improve strongly at 30.2% in July 2022 compared to the same period last year, while the growth rate in June 2022 is 27.3%.

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.

Exports, imports and industrial production are forecast to increase by 22.2%, 20% and 15%, respectively, in July 2022 compared with 20%, 16.3% and 11.5% in the previous month. Vietnam is expected to record a trade deficit this month.

Inflation 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, thanks to tax adjustment measures, gasoline prices in Vietnam have continuously decreased by about 20% since early July 2022. The Government has also proposed reduction of the import tax on gasoline to 10% from 20% for the National Assembly to consider at the next session. However, price pressures, especially food and fuel prices, are likely to increase in the final months of 2022 and in 2023./.