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Southeast Asia’s fastest-growing economy

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Southeast Asia’s fastest-growing economy: As Vietnam recovers from the epidemic, Prime Minister Pham Minh Chinh is sure that growth will surpass projections this year. Because of this, Vietnam’s economy will continue to grow faster in Southeast Asia until 2019.

In contrast to the median 7.3% rate predicted in a Bloomberg poll, he anticipates that the gross domestic product will increase by 8% in 2022 and by 6.5% the following year.

Chinh called the 2023 prediction “realistic” since the economy is facing many problems and obstacles, and the global economy is worsening. However, he said that the excellent base created by the current year’s GDP performance would make next year’s growth much more difficult.

The prime minister’s annual speech lays out the following year’s economic strategy. It happens simultaneously with plans to help people get back on their feet after last year’s anti-virus lockdowns. Which shut down businesses and messed up global supply networks.

After the limitations were lifted, domestic demand soared, and exports rose, helping the economy recover.

Despite the government’s efforts to control inflation, protect consumers from rising living expenses, and maintain economic growth, Vietnam’s GDP increased by over 10% in the third quarter.

The central bank is encouraging commercial banks to find ways to lower lending costs after raising interest rates last month to fight inflation and protect the currency.

According to Chinh, the government “will handle measures that may aid in the economic recovery. But will also be vigilant about the danger of fuelling inflation.”

“The government would carefully control loans to potentially problematic locations while attempting to retain a sufficient money supply for firms.”
The government predicts inflation to be 4.5% in 2023 instead of 4% this year.

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