IMF: Vietnam Economy to Grow 4.75 per cent, Budget Deficit Up 8.25 per cent This Year
The International Monetary Fund (IMF) has just revised Vietnam’s GDP growth rate to 4.75 per cent from 5 per cent this year, forecasting short-term capital pullouts will put pressures on its reserves and forex rates.
IMF predicted that the country’s current account deficit will be down 8 per cent of its GDP value, attributing it to a sharp drop of imports due to slumping domestic demand amid the global downturn.
IMF called on the government to further widen the forex trading band combined with effective fiscal policies particularly in demand stimulus packages.
The Southeast Asian country will likely report coffer deficit to up 8.25 per cent of its GDP, it forecast.
Good liquidity of the banking sector and improved business operations of banks will shield against economic crisis shocks, it proposed.
IMF was also optimistic about medium and long-term outlook of Vietnam’s economy.
The World Bank has also cut Vietnam’s GDP growth to 5.5 per cent from 6.5 per cent earlier, state media said.
First Deputy Prime Minister Nguyen Sinh Hung forecast Vietnam’s economy will slow to 5 per cent to 6 per cent down from the set 6.5 per cent target, to be led by the domestic demand. (mof.gov.vn, Banking Times)
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