return icon Vietnamnet.vn

WB lowers Vietnam’s GDP growth forecast to 2-2.5 percent this year

Vietnam’s GDP growth forecast for this year has been lowered to 2-2.5 percent, according to the World Bank's October 2021 Vietnam Macro Monitoring.

{keywords}

 

Vietnam's GDP in the third quarter of 2021 decreased by 6.2 percent from the same period last year, the sharpest decline since Vietnam announced its quarterly GDP, the WB estimated.

Given the sharp contraction of the GDP in the third quarter and depending on the strength of the economic rebound in the fourth quarter, GDP growth for 2021 is projected to be in the 2 percent to 2.5 percent range, well below the WB's August forecast of 4.8 percent, it said.

Labour market conditions worsened substantially, reflecting the adverse economic impacts of the lengthy lockdown in major economic centres.

As the number of new COVID-19 infections started to fall, Hanoi and several provinces eased stringent restrictions so that mobility, industrial production index and retail sales started to recover although they remained lower than a year ago.

The merchandise trade balance improved as import growth slowed while foreign direct investment (FDI) commitment grew for a third month, suggesting foreign investors remain confident in the longer-term potential of the economy.

Inflation remained subdued amid weak domestic demand while the Vietnamese dong experienced further nominal appreciation in the domestic official market. Credit growth decelerated due to weakening credit demand associated with slower economic activities but was comparable to pre-pandemic rates as banks continued to provide preferential loans and forbearance to support businesses affected by the pandemic, according to the WB.

The year-on-year budget balance remained in surplus over the past nine months despite posting another monthly deficit in September, mainly driven by a sharp fall in revenues. The resumption of economic activities after a prolonged social distancing is facing obstacles as can be seen from the experiences of other countries in the world. Reactivating manufacturing factories and businesses in the services sector will face potential product and labour shortages, it said.

To ease logistical constraints, the WB recommended that the Government of Vietnam continue testing and vaccination on a large scale and encouraging labour mobility should be prioritised.

The authorities should also adopt a more expansionary fiscal policy and use the various fiscal tools available to support the economic rebound, including easing procedural rigidities in the budget to spend the planned current budget, accelerating the implementation of planned public investment, and expanding social protection to households and to formal and informal workers, it said./.

Source: VNA

Vietnam's economic growth to recover from Q4: Economist

Vietnam's economic growth to recover from Q4: Economist

The Vietnamese economy is likely to gradually recover from the fourth quarter of 2021 and escape the minus growth seen in the third quarter.

MORE NEWS

The most important 'economic corridors' for next 10-30 years

The national planning draft for 2021-2030 with a vision towards 2050 focuses on the formulation and development of economic corridors, dynamic zones, large cities and economic zones associated with the national infrastructure framework.

Artisans strive to keep traditional craft alive

Artisan Tran Van Ban is busy all day from early in the morning to the evening. He is carving out beautiful mooncake molds to serve people's demands for the Mid-Autumn Festival which is approaching in the next few weeks.

Goalkeeper Dang Van Lam returns home to join a V.league 1’s club

Goalkeeper Dang Van Lam is set for a return to V.League 1 after touching down in HCM City with his agent.

VN Aviation Business Association proposal raising domestic airfare ceiling

The president of the Vietnam Aviation Business Association (VABA) has proposed to adjust the ceiling fare for domestic airlines to promote the industry's recovery.

More than 251 million doses of COVID-19 vaccines administered in Vietnam

More than 251 million doses of COID-19 vaccines have been administered to Vietnamese people of all ages across the country, including nearly 100,000 doses given on August 14, according to the Ministry of Health.

Foreign experts learn from Vietnam’s biphasic in vitro maturation technology

A group of four Australian doctors and experts visited My Duc Hospital in Phu Nhuan district, Ho Chi Minh City, to learn from the Vietnamese side’s experience in biphasic in vitro maturation (CAPA-IVM) from August 13-14.

HCM City ready to reactivate COVID-19 treatment hospitals

The Department of Health of Ho Chi Minh City has recently requested its medical facilities to get plans readied for the acceptance and treatment of COVID-19 patients in the context of increases in the number of new cases.

How many supermarkets are in Hanoi, HCM City?

In some localities in the country, no new supermarket has been set up over the last seven years.

Can the Vietnamese metaverse classroom compete with Facebook and Google?

With beautiful graphics, colors and materials, Vietnam’s Elite Meta is dreaming of competing equally with giants Facebook and Google.

PM thanks Russian scientists for preservation of President Ho’s embalmed body

Russian experts have joined the preservation of President Ho Chi Minh’s body for over 50 years since he passed away in 1969.

Shares to keep upward trend this week: brokers

Vietnamese shares are forecast to continue their upward trend this week as profit-taking pressure is cooling down significantly.

Emulating the ambitions of Singapore’s high-tech vision

With its vibrant economic development, Vietnam offers an unparalleled investment destination for Singaporean corporations.

Entertainment and cultural events of the week (August 15-21)

Upcoming entertainment and cultural events in Vietnam's major cities on August 15-21.

My, Nghi represent Việt Nam at Simone Asia Pacific Cup

Nguyen Thao My and Ngo Bao Nghi will battle it out for personal and team glory at the inaugural Simone Asia Pacific Cup in Indonesia later this month.

Vietnam stock market remains attractive to foreign investors

Foreign investors net purchased 14.8 million stocks, worth some VND80 billion ($3,42 million) during the week from August 8 – 12, showing that the Vietnamese securities market remained attractive to them.
back_to_top