ANZ: Vietnam’s Growth Outlook Brighter in Second Half

5:33:26 PM | 7/26/2012

Vietnam’s economy is expected to pick up more quickly and inflation would continue dropping in the second half of 2012, according to a recent report released by ANZ Bank.
In Q2/2012, the country’s GDP increased 4.7%, an increase of 0.6% compared to the first quarter. The international credit institution forecast that the GDP would expand 5.5 this year.
ANZ estimated that the credit growth will sturdily rise in the second half thanks to the interest rate reductions. Moreover, the Government also planned to raise the credit growth by 8-10% in the next six months. 
In a bid to support growth, public investment would be increased to VND 22,900 billion in the second half, up nearly VND 8,000 billion in comparison with the first half.
The report revealed that trade surplus in the first half substantially contributed to improving balance of payments and stabilizing Vietnamese dong.
The inflation rate may remain at single digit of 6-7% at the end of this year, the report said.