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Vietnam growth to slow to 6.5% in 2025, lose pace further in 2026: IMF
Economic growth is projected to slow to 6.5 per cent in 2025 and decelerate further in 2026 given the full year effect of the new US tariffs (announced in July) and unwinding of most of the one-off 2025 government stimulus, it noted.
There is room for greater fiscal support if economic growth slows down markedly, while space for monetary easing is limited. Allowing more flexibility in the exchange rate and strengthening the resilience of the financial sector will be important, the IMF said after recently concluding its Article IV consultation with the country.
Though Vietnam’s economy rebounded strongly in 2024 and early 2025, the outlook is constrained by high global uncertainty on trade and economic policies, the IMF said.
Growth may slow to 6.5 per cent in 2025 and lose pace in 2026, it noted.
Downside risks are high.
A further escalation in global trade tensions or a tightening of global financial conditions could weaken further exports and investment.
Implementation of the ambitious reform agenda and infrastructure improvements presents an opportunity to raise medium-term growth and reduce external vulnerabilities, it noted.
Inflation in the country accelerated somewhat in recent months, reaching 3.6 per cent year on year (YoY) in June, but remains below the target. The current account surplus reached a record 6.6 per cent of gross domestic product (GDP) in 2024.
Downside risks are high. A further escalation in global trade tensions or a tightening of global financial conditions could weaken further exports and investment.
Domestically, financial stress could re-emerge from tighter financial conditions and high corporate indebtedness, the IMF observed.
On the upside, successfully implementing infrastructure projects and structural reforms could significantly boost medium-term growth. If global trade tensions subside, the economic outlook would improve, it added.
Fibre2Fashion News Desk (DS)
According to updated Eurosystem staff projections, headline inflation is expected to average 2.1 per cent in 2025, easing to 1.9 per cent in 2026 and 1.8 per cent in 2027, before returning to 2.0 per cent in 2028. Inflation excluding energy and food is forecast at 2.4 per cent in 2025, gradually declining to 2.0 per cent by 2028. Inflation for 2026 has been revised upward, mainly due to expectations that services inflation will fall more slowly than previously anticipated, the Governing Council of the ECB said in a press release.
European Central Bank has kept its key interest rates unchanged, maintaining confidence that inflation will stabilise at the 2 per cent target.
Updated projections show inflation easing gradually over the coming years, with a slight upward revision for 2026 due to persistent services prices.
Economic growth forecasts have been revised higher, supported by stronger domestic demand.
The ECB also revised its economic growth outlook higher compared with its September projections. Growth is now expected to reach 1.4 per cent in 2025, 1.2 per cent in 2026 and 1.4 per cent in 2027, with expansion projected to remain at 1.4 per cent in 2028. The improvement is driven largely by stronger domestic demand across the euro area.
The Council reiterated its commitment to ensuring that inflation stabilises sustainably at the 2 per cent target. It emphasised that future monetary policy decisions will remain data-dependent and assessed on a meeting-by-meeting basis, without pre-committing to any specific interest rate path.
Fibre2Fashion News Desk (KD)
Vera Bradley reported Q3 net revenues of $62.3 million, down from $70.5 million year over year.
Direct revenues fell 5.3 per cent, with comparable sales down 5.8 per cent, while indirect revenues dropped 30.2 per cent.
Gross margin declined to 42.1 per cent, impacted by inventory write-downs and higher duties, despite early progress from its Project Sunshine transformation.
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