At Gemalink International Port in Ba Ria - Vung Tau province. The ADB has raised its 2024 and 2025 growth forecasts for Vietnam on the back of the country's stronger trade activities. (Photo: VNA)

In its latest edition of Asian Development Outlook (ADO), the bank highlighted that accelerated public investment and accommodative fiscal and monetary policies are anticipated to further stimulate domestic demand amidst external challenges.

Despite the severe impacts caused by Typhoon Yagi in various areas of the country, the Government's swift response and recovery efforts limited the impacts on growth, it stated.

The growth forecasts for Asia and Pacific were trimmed to 4.9% in 2024 and 4.8% for 2025 due to weaker domestic demand prospects in South Asia.

In the meantime, the region’s inflation rates were adjusted down to 2.7% from 2.8% in 2024 and 2.6% from 2.9% in 2025, mainly on softening global commodity prices and an expected decline in oil prices.

According to the ADB, that the incoming Donald Trump administration promises significant policy changes could affect the region’s long-term prospects. New trade, fiscal and immigration policies could dent growth and boost inflation in developing countries. However, the time it takes to enact the policies means their effects are unlikely to be felt before 2026.

Southeast Asia’s growth outlook for 2024 improved, revised up to 4.7% from 4.5%, driven by stronger manufacturing exports and public capital spending in larger economy. The region’s 2025 growth forecast is 4.7%./.