Vietnam’s GDP rose to a record 8%
2022.12.29 00:14
Vietnam’s GDP rose to a record 8%
Budrigannews.com – Due to robust domestic retail sales and exports and Vietnam’s fastest annual growth rate since 1997, the economy expanded by 8.02 percent in 2022, but it faces challenges from a global slowdown.
The perusing is higher than an authority development focus of 6.0%-6.5% and last year’s development of simply 2.58%, when Coronavirus lockdowns resulted in a gouge on the economy and influenced processing plant movement.
Despite worries about a global recession and how it might affect demand for Vietnam’s exports of textiles, footwear, and electronics to big-name international brands, the high annual growth number is still there.
The General Statistics Office (GSO) stated in a report that “the economic performance is worth noting amid global economic and political uncertainty and challenges.”
The modern and development area in 2022 became 7.78%, while the administrations area extended 9.99%, and the horticultural area developed 3.36%, it said.
According to the GSO, exports increased 10.6 percent to $371.85 billion in 2022, retail sales increased 19.8 percent, and consumer prices increased 4.55% in December compared to the previous year.
Even though the economy grew at its fastest rate in decades in 2022, economists warned that it faces challenges ahead, as shipments have already been affected by weakening global demand.
Can Van Luc, an economist at the Bank for Investment and Development of Vietnam who serves as an advisor to the government, stated, “The slowdown in global economic growth is making it more difficult for Vietnam to boost its exports and attract more foreign investment next year.”
“Vietnam has to import a lot of goods whose prices are still high, thus also pushing up pressure for higher inflation,” Luc said. Following an increase in the money supply toward the end of 2022, he added, “Vietnam has to import a lot of goods whose prices are still high.”
In comparison to the previous month, exports decreased by 14% to $29.66 billion in December, while imports decreased by 8.1% to $29.16 billion. As businesses reduce their purchases of production-related materials and equipment, a decrease in imports may indicate a future contraction in industrial production.
According to the GSO, GDP grew by 5.92 percent in the fourth quarter, down from 13.71 percent in the third. Growth was revised up from 13.67% in the third quarter.
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According to the government, FDI into Vietnam, one of the primary economic drivers of the nation, increased by 13.5 percent this year to $22.4 billion. However, FDI pledges, which indicate future inflows, decreased by 11% to $27.72 billion during the year.
Vietnam expects GDP growth of 6.5 percent and inflation of 4.5 percent in the coming year.
