HANOI, April 4 (Xinhua) -- Vietnam's economy is expected to grow 6.5 percent this year, supported by faster public spending, stronger private consumption and tourism recovery, the Asian Development Bank (ADB) said on Tuesday.
Vietnam's exports and imports are expected to shrink by 7 percent this year due to weakening global demand, leading to a current account deficit equivalent to 1 percent to GDP this year, the bank said in the latest report.
Economic growth of the country will be constrained in 2023 by the global slowdown, however, quicker disbursement of public spending, coupled with an easing monetary policy, will counter these headwinds, said ADB country director Andrew Jeffries.
China is also expected to support Vietnam's growth, the report said, adding that significant demand from the world's second-biggest economy would help Vietnam's agricultural exports expand by 3.2 percent this year.
The country will benefit considerably from Chinese tourists, said the ADB country director.
Revived tourism, new public investment and stimulus programs are expected to keep domestic consumption on the rise, though higher inflation may hamper its recovery, the bank said.
The global economic slowdown deepened in the fourth quarter of 2022 and will likely continue in 2023. Vietnam's industry growth is forecast to slow to 7.5 percent this year due to falling demand from major trade partners.
The report also projects Vietnam's economy to grow 6.8 percent in 2024. ■
