FX.co ★ IMF Predicts Vietnam’s GDP Growth to Slow to 5.4% Amid High Tariffs

The International Monetary Fund (IMF) has projected that Vietnam's economic growth will decelerate to 5.4% this year, a decrease from last year's 7.09%, owing to a high-tariff situation. Vietnam has been engaged in multiple negotiation rounds with the United States to reach an agreement and avoid the Trump administration’s proposed 46% tariff on its exports. "The economic forecast is highly reliant on the results of these trade negotiations and is hampered by the considerable global uncertainty regarding trade policies and economic expansion," the IMF stated in a release on Wednesday. The organization highlighted that in a scenario with elevated tariffs, economic growth is expected to slow down even further next year. However, they noted that "if global trade tensions decrease, the economic outlook would experience a substantial improvement." It is important to mention that last year, exports to the US made up roughly 30% of Vietnam’s GDP.