ADB Forecasts Vietnam GDP Growth of 4.5 per cent This Yr
The Asian Development Bank (ADB) has forecast in a report that Vietnam’s economy will slow to 4.5 per cent this year and will recover to 6.5 per cent next year.
Despite impacts of the global economic downturn, Vietnam’s economy may still be able to achieve a moderate level of growth of 4.5 per cent in 2009 and recover to 6.5 per cent in 2010, the ADB's report said.
A slowdown in growth of the domestic economy is inevitable, and near-term economic prospects of Vietnam are clouded with unusually high level of uncertainty on the length and depth of the global economic downturn, it said.
“The main near-term challenge for Vietnam is to limit the slowdown in growth while keeping fiscal and current account deficits in check,” said Aymui Konishi, ADB Country Director for Vietnam said.
“The government of Vietnam should accelerate economic reforms and further open up its economy in line with WTO commitments in order to maintain confidence of investors and the public at large,” he said.
“Special attention needs to be paid to address unemployment and under-employment, and to supporting small and medium-sized enterprises and the poor,” he elaborated.
Average annual inflation is forecast to slow to 4 per cent this year as GDP is likely to below its potential level and fiscal deficit is projected to widen to 9.8 per cent due to decline in oil revenues, corporate tax breaks and fiscal stimulus policies, the ADB said.
In medium term, Vietnam’s GDP growth is likely to pick up to 7 per cent to 7.5 per cent, driven by strong FDI inflows. (ADB’s Report)
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