7:41:15 PM | 18/9/2008
The Asian Development Bank (ADB) Sept 16 advised that Vietnam should lower its economic growth rate to 6.5 per cent this year, 6 per cent next year as part of continued efforts to stabilize the macro economy to ensure robust growth in coming years.
The bank released its warning on concerns over Vietnam may loosen its monetary and fiscal policies to encourage public investments to achieve high GDP growth rate after lower forecast inflation and narrowed trade deficit, Vietnam News Agency said.
“Our suggestion to the government of Vietnam is that it probably aims for lower growth rate with lower inflation and lower trade deficit next year,” said Ayumi Konishi, ADB country director for Vietnam said, noting “Then Vietnam will be able to aim at much higher growth in 2010.”
“If you look at historical lessons of many countries in controlling inflation, stabilizing macro economy, actually you will almost never find any country which has succeeded in controlling inflation and at the same time promoting growth,” Konishi said.
We [ADB] advise that the government of Vietnam should keep patience and focus its policies to stabilize the macro economy, Konishi added.
ADB also forecast that inflation will be 25 per cent this year and 17.5 per cent next year and current account deficit will account for 13.5 per cent of the country’s GDP value and 7 per cent next year, the agency said.
The bank also highlighted that once inflation is brought back to one-digit level; GDP growth will be then considered.
Nguyen Tri Thanh, an economist, head of the Central Institute for Economic Management (CIEM) said that what Vietnam should do is to prioritize stabilizing the macroeconomy and continue improving the business environment. (The People, News)
Vietnamese
