Singapore-headquartered United Overseas Bank (UOB) has raised its forecast for Vietnam’s 2024 GDP growth to 6.4% from 5.9% due to the strong performance of the country in the third quarter.

The revision is to account for the year-to-date performance and the disruptions to activities in early Q4/2024 caused by Typhoon Yagi, the bank said in a report released on October 8.

Vietnam’s GDP growth in the third quarter rose 7.4% year-on-year, exceeding the median consensus view of 6.1% and the UOB’s forecast of 5.7%.

This was the fastest pace since the third quarter of 2022 when activities rebounded sharply from the trough of the pandemic. The surprise outcome of the third quarter reflected the resilience of the economy, despite the devastation from the deadly typhoon Yagi, the bank said.

The latest figure extended the revised 7.09% gain in the second quarter of 2024, resulting in a cumulative 6.82% year-on-year increase in the first nine months of 2024.

Experts at UOB said both the manufacturing and services sectors continued to be the main drivers of business activities, while external trade maintained its strong pace in the third quarter of 2024.

The upswing in semiconductor sales since mid-2023 suggests that the momentum will likely be sustained in the one to two quarters ahead.

Source: VNECONOMY