VietNamNet Bridge - Although the GDP growth rate is high and the inflation rate is low, both people and businesses are facing difficulties, economists say.

A government report shows that GDP grew by 6.5 percent in the first nine months of the year, the highest growth rate compared with the same period of the four previous years.

Meanwhile, the 9-month basic inflation rate was 2.15 percent only. The consumer price index (CPI) increased by 0.74 percent only against the same period, which represented the lowest increase in the last 15 years during the same time.

Economists have questioned the figures.

“Why was the inflation rate low while both fiscal and monetary policies were open?” said Nguyen Dinh Cung, head of CIEM.

The government’s report showed that the outstanding loans would increase by 17 percent in 2015, the sharpest increase since 2011.

Cung said that the inflation rate in the first nine months of the year was low because of the low input material prices in the world market.

“The inflation rate would still be low the next year if the world’s prices are stable. However, if the prices go up, the macroeconomic uncertainties would come back quickly if Vietnam continues loosening monetary and fiscal policies,” Cung said,.

“The macroeconomic instability would return anytime if things occur in the world market,” he said.

In principle, when the inflation rate is low, the state needs to take full advantage of the situation to cut expenses for businesses and people. However, in reality, the prices of public services have been raised.

“People’s income remains unchanged, while the services’ fees have escalated. This has led to a decrease in living standards,” Cung noted.

The economist also pointed out that the lending interest rate was still sky high at 9-10 percent per annum in the context of low inflation.

“The lending interest rates didn’t go down even when the monetary and fiscal policies were loosened. Businesses still suffer from high financial cost,” Cung said.

The government’s report showed that in the first nine months of the year, the number of newly set up businesses increased by 28.5 percent, while the registered investment capital increased by 31.4 percent compared with the same period of last year. There are 525,000 operational businesses, 50 percent higher than in 2010.

Meanwhile, a report by the National Assembly’s Economics Committee showed that 54,566 businesses were dissolved in the first nine months, equal to that in 2011 and 2012.

TBKTSG