UNESCAP: Vietnam GDP Growth To Slow to 4 per cent This Year

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has recently forecast that Vietnam's economy will slow to 4 per cent, the record low since 1990 due to impacts of the global crisis.

 

Mia Mikic, an official of the UNESCAP gave its outlook prediction on press briefing in Hanoi late last week based on exports revenues of rice and fuels staples of Vietnam and prices at the world market.

 

Vietnam's exports in the second and third quarters last year jumped 45 per cent, mainly driven by rice prices rocketing 45 per cent in Jan-May; however, when rice prices cooled down, its traditional markets experienced serious recession, which resulted in drop of its exports value to 6.5 per cent in the last quarter and to 3.7 per cent to 4 per cent in the first two months this year, she said.

 

Meanwhile, price of crude oil on the global market slumped sharply to US$36/barrel from a record high of US$147/barrel last July.

 

“Vietnam and the Asia-Pacific region will remain a main driver of the global economy,” UNESCAP's statement said, hailing efforts by the government of Vietnam in cutting inflation to 14.8 per cent in Feb from 29 per cent last October.

 

“Vietnam should be vigilant about demand-stimulus packages as state budget deficit tends to widen,” Ms Mia Mikic proposed.

 

Earlier this month, the World Bank and the IMF revised GDP growth to 5.5 per cent and 4.75 per cent, respectively from 6.5 per cent and 5 per cent, state media said. (mof.gov.vn, VNA)