Singapore-based United Overseas Bank (UOB) has raised Vietnam’s projected GDP growth this year to 7% thanks to the country’s impressive economic growth recorded in the second quarter of the year.
All business operations have returned to normal after COVID-19 restrictions were removed, helping the economy to gather full steam.
The target would be achievable on the condition that there would be no further COVID-19 inflicted disruptions and its GDP growth for the second half of the year would hover at around 7.6-7.8%.
The bank revised its projection after the General Statistics Office of Vietnam announced on June 29 major socio-economic indicators in the second quarter and first half of the year.
Accordingly, Vietnam secured an impressive growth rate of 7.7% in the second quarter, exceeding the 5.9% rate predicted by research institutions and an estimated 6% by UOB.
As a result, its GDP grew 6.4% in the first half fueled by a 9.7% increase in manufacturing and a 6.6% increase in services.
With regard to inflation, UOB noted inflationary pressure could be controlled on the back of stable food prices. However, rising energy prices would affect the rest of the economy, bringing to bear pressure on inflation control efforts.
A week ago, the Singapore-based bank maintained Vietnam’s GDP growth forecast at 6.5% and inflation at 3.7% for this year, although it anticipates inflation would rise to 5% ahead in 2023.
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