IMF, ADB: Vietnam's 6.5 per cent GDP Growth for 2009 Too Ambitious
At the CG Group meeting opening in Hanoi Dec 4, the International Monetary Fund and the Asian Development Bank have warned that the 6.5 per cent GDP growth rate for next year set by Vietnam is too ambitious amid the global recession, Vietnamese state media said.
Shogo Ishii, assistant director of the IMF's Asia-Pacific Department forecast that Vietnam’s economic growth will ease at 5 per cent and inflation will be tamed to single digits by the end of 2009 thanks to dropping consumer prices.
The IMF forecast that Vietnam’s exports, significant driver of the economy, will likely drop sharply to due to the global downturn, deficit in current account will be down to 9 per cent of GDP value, compared with 12 per cent this year.
The IMF also pointed out main risks facing Vietnam’s economy: FDI and remittances will drop, short-term foreign debts and pullouts by foreign management funds will place great pressures on its forex reserves and policies and shrinking economic performance will challenge the banking systems and businesses.
Meanwhile, Ayumi Konishi, President of the Asian Development Bank has warned that the government of Vietnam should be flexible in setting the GDP growth target in line with current situation.
“The growth target of 6.5 per cent for 2009 is rather ambitious,” the ADB president said.
The ADB will increase ODA loans to US$1.5 billion from US$1.35 billion for Vietnam next year to support its economic development plans to become medium earner. (Vietnam Economic Times, Investment)
Vietnamese
