ADB believes Vietnam’s 2020 growth will still be highest in Southeast Asia
The Asian Development Bank (ADB) recently forecast that Vietnam’s economic growth this year would be 4.1 percent, 0.7 percentage points lower than its April estimate but still the highest expected in Southeast Asia.
A view of Ho Chi Minh City, an economic hub in the south of Vietnam (Photo: VNA)
Hanoi (VNA) - The AsianDevelopment Bank (ADB) recently forecast that Vietnam’s economic growth this year wouldbe 4.1 percent, 0.7 percentage points lower than its April estimate but stillthe highest expected in Southeast Asia.
It made the forecast in a regular update toits annual flagship economic publication, the Asian Development Outlook (ADO)2020, which was released in April.
Economic activity in Southeast Asia is expectedto contract by 2.7 percent in 2020 before growing by 5.2 percent in 2021.
Contractions are forecast in key economies ascontainment measures to address the COVID-19 pandemic have affected domesticconsumption and investment, including Indonesia (-1.0 percent), the Philippines(-3.8 percent), and Thailand (-6.5 percent).
It also noted that developing Asian economies will barelygrow in 2020 as coronavirus containment measures have hampered economicactivity and weakened external demand.
The ADB projected growth of 0.1 percent for theregion in 2020, down from the 2.2 percent forecast in April, which would be theslowest pace for the region since 1961.
It still maintained its 2021 forecast at 6.2percent but said GDP levels in the year would remain below what had beenenvisioned and below pre-crisis trends.
“Economies in Asia and the Pacific will continueto feel the blow from the COVID-19 pandemic this year, even as lockdowns areslowly eased and select economic activities restart in a ‘new normal’ scenario,”said ADB Chief Economist Yasuyuki Sawada.
“While we see a higher growth outlookfor the region in 2021, this is mainly due to weak numbers this year and this willnot be a V-shaped recovery. Governments should undertake policy measures toreduce the negative impact of COVID-19 and ensure that no further waves of outbreaksoccur,” he added./.
The World Bank (WB) released a report on May 27, offering policy recommendations to help Vietnam maintain quality growth through more dynamic firms, more efficient infrastructure, skills, and a move toward a greener economy.
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A view of Ho Chi Minh City, an economic hub in the south of Vietnam (Photo: VNA) 
