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IMF Predicts Vietnam's Economic Growth Rates Will Top ASEAN in 2022

The International Monetary Fund (IMF) predicts Vietnam's economy will grow 7.2% in 2022, making it the strongest in ASEAN.

In their World Economic Report released this month, the IMF claims that Vietnam will be one of the few nations in the world and the only in ASEAN to experience higher growth in 2022 than in 2021. The average global growth is expected to fall from 6 to 4.4% between 2021 and 2022 while Vietnam could rise from 6.5 to 7.2%. The Philippines is expected to drop from 6.9 to 6.5% while Malaysia is to remain at 6.5% and Cambodia drops from 6.0 to 4.2% over the same time period

Fitch Ratings explains that despite Vietnam's tourism industry taking a hit over the last 12 months, the economy remains robust due to a rise in exports and domestic activity which was supported by a strong response to COVID-19. Manufacturing operations shifting from China to neighboring nations in part because of China's relationship with America is also contributing to the growthThe nation's unemployment rate is projected to fall from 3.3% in 2020 to 2.7% in 2021 and 2.4% in 2022.

Vietnam has managed to limit the damage of COVID-19 on its economy as much as possible, but it didn't get away unscathed. The country ended 2020 with a GDP growth rate of 2.91%, the slowest growth in a decade. Still, the figure is enviable when placed in global picture, where a number of mature economies experienced contraction last year.

Earlier this year, Standard Chartered Bank released its own economic predictions. According to the report, the company projects that Vietnam will grow by 7.8% in 2021 thanks to a strong rebound in manufacturing and ample foreign direct investments.