Gross Domestic Production (GDP) of Vietnam is likely to jump from 2.6% of 2021 to 7.5% in 2022 thanks to its robust manufacturing and services sectors, predicted the World Bank.
Moreover, inflation in the country is expected to average at 3.8% over the year, the report titled ‘Taking stock: Educate to grow,’ the World Bank’s bi-annual economic outlook for Vietnam’ projected.
According to the report, Vietnam’s economy has grown by 5.2% in Q4-2021, 5.1% in Q1-2022, and 7.7% in Q2-2022.
However, there are still some factors that may threaten the positive economic outlook of the country such as growth slowdown in main export markets, commodity price shocks, continued disruption of global supply chains, constant labour shortages, higher inflation and financial sector risks, or the emergence of new COVID-19 variants, the report added.
Given the nascent domestic recovery, the weakening global demand outlook, and heightened inflation risks, the report suggests a proactive response by the authorities.