Vietnam’s economy recovers gradually, expects to grow 5.5% in 2024: WB report

Vietnam’s economy is showing mixed signs of recovery in early 2024, with growth forecast to reach 5.5% this year and gradually rise to 6% next year, according to the latest World Bank Taking Stock bi-annual economic update released on Tuesday.

The report is a special feature of the World Bank, which emphasizes the essential role of innovative entrepreneurship in helping Vietnam become a high-income country by 2045.

WB experts said Vietnam’s exports are recovering, and consumption and private domestic investment growing more gradually. Real exports are expected to grow by 3.5% in 2024, reflecting a gradual improvement in global demand.

Export of manufactured industrial commodities is expected to continue recovering in the next two years thanks to growing demands from major trading partners including the US, Europe and China. The real estate market is predicted to transition towards an upward trend, bolstering domestic demand as investors and consumers regain confidence, according to the report.

“Vietnam’s growth in 2024 is expected to accelerate on a gradual manner. However, to get back to the fast rate we observed before the pandemic, effective and coordinated fiscal and monetary policies are needed,” said Andrea Coppola, Chief Economist of the World Bank in Vietnam.

The private sector needs to play a very important role, he added.

(Source: https://vovworld.vn/)