Macroeconomic Forecast Vietnam

January 2006 | Macroeconomic Forecasts

Vietnam’s economy will continue to experience strong growth over our forecast period. After expanding 8.4% in 2005, according to official figures, we expect the growth to remain strong, with GDP expanding by 8.1% in 2006, supported by growing domestic demand and a strong external sector. Expected accession to the World Trade Organisation in 2006 will boost export levels, further narrowing the trade deficit at a time when oil import costs are forecast to decrease. Inflation, meanwhile, will moderate in 2006. After rising to an estimated 8.3% in 2005, due to high oil import costs and food shortages, we expect inflationary pressures to moderate ahead as oil prices fall.

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