Private Consumption in Vietnam
GDP growth slows in Q1
GDP growth slowed markedly to 3.3% year on year in the first quarter from 5.9% in the fourth quarter of last year. Q1’s reading marked the worst reading since Q3 2021.
The deceleration was driven by slowdowns in the agriculture and services sectors and a contraction in the industry and construction sector. Agriculture expanded 2.5% (Q4: +3.9%) while services expanded 6.8% (Q4: +8.2%). Meanwhile, the industrial and construction sector contracted 0.4% (Q4: +4.2%).
Looking ahead, year-on-year growth is set to accelerate in Q2 as inflation cools and China’s reopening boosts activity. Lower interest rates will also add support.
On the outlook, analysts at the EIU said:
“A trend of international firms relocating manufacturing operations to (or otherwise sourcing from) Vietnam will help the economy to outperform many regional peers in 2023-24 and will remain the main impetus behind growth in the years that follow.”
Vietnam Private Consumption Chart
This chart displays Private Consumption (annual variation in %) for Vietnam from 2013 to 2022.
Vietnam Private Consumption Data
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Private Consumption (ann. var. %) | 7.2 | 6.9 | 7.0 | 0.4 | 1.9 |