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1 Jul 2024

International Economy

Vietnam’s 2Q24 economic growth beats expectations, thanks to increased public investment and domestic spending, but numerous risks loom (Business Brief No.4069 Full Ed.)

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Vietnam’s 2Q24 economic growth beats expectations, thanks to increased public investment and domestic spending, but numerous risks loom
  • Vietnam's economy grew 6.9 percent YoY in 2Q24, beating the consensus of 5.8 percent and 5.9 percent YoY growth reported for 1Q24. The increase was driven by household consumption and public investment despite the slowdown in foreign direct investment (FDI) and exports.
  • Looking into 2H24, Vietnam's economic growth is expected to decline from the 6.42 percent YoY growth recorded in 1H24, due to the projected slowdown in exports. For 2024, KResearch expects Vietnam's economy to grow at 6.2 percent, bettering our prior estimate of 5.8 percent, thanks to the better-than-expected economic performance in 2Q24 and anticipated growth in public investment following the easing of political uncertainties.
  • Despite these positive developments, Vietnam's economy still faces several risks, including elevated global economic uncertainty, persistent debt problems in the real estate sector, the depreciation trend of the Vietnamese dong, and the potential increase in inflation rates.

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International Economy