(MENAFN) The Asian Development Bank (ADB) has reduced its estimate of Vietnam’s gross domestic product (GDP) expansion this year, reaching 3.8% from a previous forecast of 5.8% in July.
The bank said in a report released on Wednesday that Vietnam’s economic expansion accelerated in the first six months of the year, mostly due to higher trading volumes, but a resurgence of the coronavirus pandemic that started in late April has tightened Vietnam’s labor market, reduced industrial production and disrupted its agricultural value chains.
The short-term estimate continues to be difficult for the country’s economy, with the prolonged wave of coronavirus being the main negative issue, especially if Vietnam’s vaccination rate does not increase significantly.
The country’s GDP grew 2.91% last year, the lowest rate of expansion recorded in the past decade. A target of around 6 percent for economic expansion this year was previously set by Vietnam’s top legislature.
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