Ministry: Vietnam Economy Could Grow 3.5 per cent-4 per cent in Q2
Vietnam's economy could grow 3.5 per cent to 4 per cent in the second quarter, up from 3.1 per cent in the first quarter as a result of the government's demand and investment stimulus packages, the Ministry of Planning and Investment has forecast.
“Based on reality of the country's economy, the government will seek approval from Vietnam's National Assembly to revise down GDP growth to 5 per cent and state budget deficit will be 8 per cent of GDP value,” Minister of Planning and Investment Vo Hong Phuc said.
Agricultural sector, husbandry, food production will be a propelling driver of the country's GDP, Phuc said, proposing banks boost lending to the sector.
Prime Minister Nguyen Tan Dung is optimistic about higher GDP growth in remaining quarters of the year.
PM Dung urged banks to boost lending low-cost loans to farmers-consumers to buy farm machinery, cements, steel and TV sets.
Mr Dung also requested the State Bank of Vietnam adjust benchmark interest rate, refinancing and rediscount rates to curb inflation to below 6 per cent this year.
The Asian Development Bank has forecast Vietnam's economy will slow to 4.5 per cent and it will recover to 6.5 per cent next year and average annual inflation will be capped at 4 per cent this year.
The World Bank and the International Monetary Fund forecast Vietnam's economy will slow to 5.5 per cent and 4.75 per cent from 6.5 per cent and 5 per cent, respectively. (Local sources)
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