HANOI: Vietnam’s economy grew by eight percent in 2022, driven by strong exports and retail sales, authorities said on Thursday.

Growth in the communist nation stuttered at around three percent for two consecutive years due to the pandemic.

Before that, Vietnam was a success story among Asian economies, posting growth of seven percent in 2019.

This year the economy grew by an estimated 8 percent, beating the government’s target of 6-6.5 percent, the official statistics office said.

“The economy has recovered” from the Covid-19 pandemic, it added.

However, growth slowed in the final quarter of the year as economies worldwide were hammered by the war in Ukraine and massive inflation.

Exports turnover in the fourth quarter experienced a year-on-year decline of 6.1 percent due to a lack of overseas orders, the statistics office said.

Earlier this month the Asian Development Bank forecast growth of 7.5 percent for Vietnam’s economy for 2022, although it warned of weakening global demand for its exports.

The lender said it forecast Vietnam’s economy to grow 6.3 percent in 2023.

The recent cost-of-living crisis in Europe and the United States — major markets for Vietnamese-produced goods — has seen the buying power of Western shoppers plunge.

According to the Vietnam General Confederation of Labor, almost half a million workers have had their hours slashed during the last four months of this year, while about 40,000 people have lost their jobs.