Thursday, 14 Dec 2017

WB forecasts GDP growth of 6.3% in 2017

Updated at Friday, 14 Apr 2017, 18:31
The Hanoitimes - The World Bank forecasts Vietnam`s economic growth in 2017 at 6.3% and will inch up to 6.4% in the next two years.

The forecast released by the World Bank in the latest Asia-Pacific economic update, with a medium-term view, Vietnam's prospects remain favorable. GDP growth is expected to increase gradually between 2017 and 2019, mainly in terms of strong domestic demand and export-oriented manufacturing and processing activities.

However, in addition to GDP growth is estimated to reach 6.3% in 2017, higher than the estimated 6.2% last year. Most other indicators, such as consumer spending, asset accumulation and import/export, are forecast to outperform 2016.

Inflationary pressures are generally low as global energy and commodity prices are falling. On the budget, the budget situation will be strengthened somewhat in the coming time, but the process of divestment will increase rapidly, but will be implemented gradually to curb the increase of public debt.

According to WB, the known risks of the economy are still. From a domestic perspective, delays in implementing budget reforms and structural shifts can increase macroeconomic vulnerability and slow down potential growth. The volatile global economy can affect trade and investment channels, making Vietnam's growth prospects bleak. According to WB, dealing with vulnerability to shocks - natural disasters, environment and climate in recent years - remains a challenge for Vietnam in improving household welfare, especially in the countryside.

The World Bank estimates that Vietnam will maintain its long-term growth rate if it continues to accelerate its restructuring to support its productivity. However, the psychology of protection and the risks associated with protectionist measures in major economies are also major risks to Vietnam's open economy.
Translated by Anh Kiet
(Source: Vietnam Economy Times)
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