ADB raises growth forecasts for Vietnam

In its latest edition of Asian Development Outlook (ADO), the bank highlighted that accelerated public investment and accommodative fiscal and monetary policies are anticipated to further stimulate domestic demand amidst external challenges.

The growth forecasts for Asia and Pacific were stable this year and next year but the incoming Donald Trump administration promises significant policy changes which could affect the region’s long-term prospects. New trade, fiscal and immigration policies could dent growth and boost inflation in developing countries. However, the time it takes to enact the policies means their effects are unlikely to be felt before 2026.

Southeast Asia’s growth outlook for 2024 improved, revised up to 4.7% from 4.5%, driven by stronger manufacturing exports and public capital spending in larger economy. The region’s 2025 growth forecast is 4.7%.