IMF sees Vietnam as having many economic opportunities from digitalization

ANTARA

International Monetary Fund (IMF) Asia and Pacific Department Director Krishna Srinivasan predicted that Vietnam will have many economic opportunities from digitalization and green transformation.

At a press conference on the Regional Economic Outlook for Asia and the Pacific in Washington reported VNA on Friday, Srinivasan said Vietnam’s economic growth is likely to increase by about 6.5 percent.

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The growth comes from various potentials, significant foreign direct investment, and ongoing efforts to improve the business environment and infrastructure.

Furthermore, Srinivasan said economic growth accelerated surprisingly in the second half of 2023 as strong domestic demand boosted activity, especially in emerging Asian countries.

Malaysia, the Philippines, Vietnam, and, most importantly, India recorded sizable positive growth surprises.

Not only that, the region’s economic growth of 5.0 percent in 2023 is much stronger than the 3.9 percent growth in 2022 and 0.4 percentage points higher than the IMF’s projection in its October 2023 Regional Economic Outlook.

The region’s economy is projected to grow by 4.5 percent in 2024, revised up by 0.3 percentage points compared to October. That would make Asia contribute about 60 percent to global growth.

Economic growth, said Srinivasan, depends on each country individually. He cited China and India, which the IMF predicts that investment will contribute disproportionately to growth.

Meanwhile, in emerging Asian countries other than China and India, strong private consumption will remain the main growth engine.

He also mentioned the challenges of monetary policy and recommended that governments focus on consolidation to limit the increase in public debt and rebuild fiscal buffers.

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