Vietnam forecast to reach highest GDP growth in Asia-Pacific in 2022

Despite moderation in July exports this year, Moody’s Analytics - a unit of Moody’s Corporation, has forecast Vietnam’s GDP growth in 2022 to reach 8.5% – the highest among its peers in the Asia-Pacific region.

A corner of Ho Chi Minh City (Photo: VNA)
A corner of Ho Chi Minh City (Photo: VNA)

Vietnam is the only Asia-Pacific (Apac) economy to experience a significant upward revision in GDP growth as forecast by Moody’s Analytics.

According to economists from the analysis firm, a very slow reopening of Vietnam’s economy earlier in the year has now turned into a rapid improvement in industrial production and export trade, supported by continued inward foreign direct investment.

While economists highlighted a deceleration of exports as reported in July’s data, they believe demand could stabilise from the US, as its labour market is “quite strong”, in their view.

They also warned that South and Southeast Asia face the greatest risk from a surprise in inflation, which could slow local demand for goods and services, including housing.