UOB projects Vietnam’s GDP growth at 6.6% for 2023

Vietnam’s real GDP growth in the fourth quarter (Q4) of 2022 normalised to 5.92 per cent year-on-year (YoY) because of a decrease in external demand. The country’s GDP surged at 13.67 per cent in Q3, according to a UOB report on Vietnam’s economic growth in the last quarter of 2022 and prospects for 2023.

Singapore-based United Overseas Bank (UOB) has retained its projection for Vietnam’s GDP growth for 2023 at 6.6 per cent, which is in line with the official forecast of 6.5 per cent despite growth momentum expected to be weaker. Vietnam’s real GDP growth in Q4 2022 normalised to 5.92 per cent year-on-year because of a decrease in external demand.

Vietnam’s recent robust economic growth was attributed to its manufacturing and service industries in 2022 and reflected the nation’s resilience post the COVID-19 pandemic, UOB experts noted. The inflation rate is anticipated to remain stable, especially during the first six months of 2023 due to the flexible monetary policy of the State Bank of Vietnam, UOB added. The State Bank of Vietnam had recently announced that it will implement a flexible monetary policy to maintain the inflation rate at 4.5 per cent in 2023, as per several Vietnamese media reports.

For the foreign exchange strategy, UOB predicted an upward momentum of the VND/USD exchange rate by estimating 25,200 VND, 25,400 VND, 25,600 VND, and 25,800 VND for the four quarters of 2023.

Fibre2Fashion News Desk (NB)