It also lowered its growth forecast for the second and third quarters of 2024 to 5.3% and 6% from 6.3% and 7.2% respectively, while fourth-quarter growth was expected to be 6 .7%.
GDP growth was 5.7% in Q1 this year compared to 6.7% in Q4 last year. Last year it was 5%.
Standard Chartered Bank has revised down Vietnam's 2024 GDP growth forecast to 6% from 6.7% due to lower-than-expected first-quarter growth and global trade headwinds, update This bank's recent macroeconomic report said. It also lowered its growth forecast for the second and third quarters of 2024 to 5.3% and 6% from 6.3% and 7.2% respectively.
The bank's economists see trade as an important source of growth and investment, despite short- and long-term challenges. However, Vietnam's recovery remains intact despite the risks. Retail sales grew strongly in the first quarter of the year.
Standard Chartered also lowered its 2024 inflation forecast to 4.3% from 5.5% to reflect lower-than-expected inflation in the first quarter.
A leading economic expert at the bank said Vietnam is improving its position in the global supply chain and continues to attract foreign investment, a domestic media reported.
With the economic recovery gaining momentum, the bank believes there will be less need for monetary policy support.
The bank forecasts a current account surplus of 3.5% of GDP in 2024.
Fiber2 Fashion News Desk (DS)
