HSBC upgrades VN’s GDP forecast to 7.6% in 2021

VGP - The Vietnamese economy is projected to vigorously back on track in 2021 with its GDP likely expanding 7.6% and inflation rate at around 3.3%, according to the Hong Kong Shanghai Banking Corporation (HSBC).

January 14, 2021 3:49 PM GMT+7

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This information was released as part of the "Viet Nam at a glance - Shining in the year like other” report produced by HSBC.

The Vietnamese economy has shown remarkable resilience despite facing unprecedented challenges. During 2020 it was one of the few economies to record positive growth at a rate of 2.9%, due to the influence of positive factors. These include the successful early containment of the virus, the quick resumption of work after lockdown, and booming electronics exports.

The economy has shown that it is capable of withstanding supply chain disruptions and remains on a steady recovery path. Meanwhile, domestic demand has also held up well, with relatively resilient private consumption, largely due to facing minimal disruption caused by the virus.

HSBC experts were upbeat about the country’s strong growth ahead in 2021, with the nation expected to benefit from several free trade agreements (FTAs), including the EU-Vietnam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP) and the UK-Vietnam Free Trade Agreement (UKVFTA).

In general, HSBC experts were convinced that the Vietnamese economy would expand by 7.6% in 2021.

According to the bank, Viet Nam will begin 2021 with a key political event, the 13th National Party Congress, which will set new economic priorities ahead for the next five to 10 years./.

By Khanh Phuong