Fitch Solutions unit cuts Vietnam 2026 GDP growth forecast on Iran war impact

HANOI, April 8 (Reuters) - BMI, a unit of Fitch Solutions, has cut Vietnam's 2026 GDP growth forecast to 7.0% from 7.2% because of the impact of the Iran war.

"Roughly 39% of Vietnam's energy needs are met by imports, and rising energy costs will hurt private consumption and exports," BMI said in a report.

• Investment and government spending will be less severely affected, it said, adding that the government's larger 4.2% fiscal deficit target for 2026 will support government consumption and public investment amid an energy crisis.

• Vietnam's annual gross domestic product growth slowed to 7.83% in the first quarter from an expansion of 8.46% in the previous three months.

• Strong foreign investment inflows will help offset the impact of high energy costs on economic growth, it said.