Vietnam economy up 5.2% in Q4, 8% tipped for 2022

HANOI - Vietnam's economy expanded by 5.22% y/y in Q4 2021, beating market estimates. A stronger-than-expected recovery in exports supported growth, despite the surge in pandemic cases.

ANZ Bank notes that further export recovery is central to its optimism regarding Vietnam's medium-term economic outlook, but believes domestic demand will strengthen due to rising vaccinations and spill-overs from the export sector. Policy support may, however, still be needed, it says.

"Our above-consensus 8% growth forecast for 2022 incorporates our strong export view, but uncertainty remains," the bank says. "We will closely monitor near-term data to assess the strength of growth momentum."

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