The Bank expects strong economic growth in the fourth quarter, which could improve the full-year increase in gross domestic product. The economy should be driven by household consumption and improved sentiment in the manufacturing sector.
For the whole of this year, Vietnam‘s gross domestic product is expected to increase by three percent. It’s predicted by Standard Chartered Bank. This is a significantly worse prediction of the economic development of the 100 million-year-old country than it entered this year. Standard Chartered had originally forecast economic growth of 7.3 percent, but the coronavirus pandemic had made a break with those plans.
“We expect domestic economic activity to increase significantly in the fourth quarter as sentiment in manufacturing sectors improves,” said Chidu Narayanan, economic analyst for the Asia region at Standard Chartered Bank.
But the International Monetary Fund is not so optimistic. In Vietnam’s current economic outlook in October, it predicts GDP growth of just 1.6 percent this year, at relatively high inflation (3.8 percent). Next year, however, the entire Southeast Asian region is expected to return to more than 6% growth. Vietnam’s economy grew by seven percent last year.