Vietnam’s economy resilient amid slower global growth: World Bank

  The outlook remains positive for Vietnam’s economy in the medium term - Photo: tieudungplus.vn

Vietnam’s economy has proven resilient despite slowed global growth, the World Bank said a report released on October 5, projecting that growth would reach 6 percent this year.

Economic activity in Vietnam moderated a bit during the first three quarters of 2016 due to the impact of a severe drought on agriculture and slower industrial growth.

According to the General Statistics Office (GSO), agriculture grew at the slowest pace in six years, at 0.65%, while mining declined by a sharp 3.6% as a result of lower crude output driven by falling global prices and weak coal sales.

The Bank, however, noted that macroeconomic stability has been maintained and inflationary pressure subdued.

The latest GSO data shows the consumer price index rose 2.07% in the first nine months of 2016 compared with the same period of last year, still within the 5% target set by the National Assembly.

At a meeting on October 3, Prime Minister Nguyen Xuan Phuc said the government aimed for 6.5% growth this year, lower than its earlier target of 6.7%, stressing that this required both determination and concrete action.

Meanwhile, the World Bank forecast Vietnam’s growth at just 6%, which it had already cut in July from its earlier estimate of 6.2% estimate.

According to the Bank, while Vietnam’s poverty rate continues to fall, a decline in agriculture poses short-term risks for the livelihoods of those for whom agriculture is the main source of income.

The outlook remained positive for the medium term, but easing macroeconomic vulnerabilities and sustaining higher growth required bolder structural, fiscal and banking reforms, the World Bank said./.

Source: NDO