According to the latest Economic Insight report for Southeast Asia, commissioned by the Institute of Chartered Accountants in England and Wales and Oxford Economics, the region's economy will grow by 4.3 percent this year and 4.2 percent the following year, falling short of the pre-pandemic average of 5 percent per year. The region's economy remained resilient in the third quarter (Q3) of this year, with improving trade conditions propelling GDP growth above projections.

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From Q2 to Q3, export growth in Singapore, Vietnam, and Malaysia increased, with the first two countries experiencing noteworthy turnarounds. According to a Vietnamese media outlet citing the document, the region's exports will undoubtedly be pushed down by protracted global weakness, mainly from the United States and China.

Vietnam's GDP will rise by 4.7% this year and 5% the following year, with a promising medium-term prognosis. Overall growth there is projected to be low by usual standards next year. Prior to the epidemic, the country's growth rate was around 7%.

Vietnam has emerged as a prominent winner in the global supply chain reshuffling, and its share of global goods exports is expected to expand further in the medium term, fueled by multinationals' 'China Plus One' strategy, according to the report.

According to the report, this should fuel Vietnamese GDP outperformance relative to ASEAN counterparts until at least 2030. Though economic progress in Vietnam stepped up in the third quarter of this year, the research expresses caution about potential obstacles next year.

Slow global growth led by the United States and China, tourism bright spots losing their lustre, and decreased private spending are all factors weighing on Vietnam's 2024 estimate.

Singapore's GDP grew by 1.4 percent quarter on quarter in the third quarter of this year, fueled by a rebound in exports and industrial activity. The country's GDP growth is expected to be 0.7% this year, down from 3.6% last year.

While the United States is unlikely to enter a recession, the research predicts an extended period of slow growth. Other advanced countries are expected to be sluggish as a result of previous policy tightening, while China's spending will stay muted as it deals with internal issues, according to the report.