Illustrative photo (Source: VNA)Hanoi (VNA) – The Asian Development Bank (ADB)has projected Vietnam will grow 6.9 percent this year, lower than its previousforecast of 7.1 percent made in April.
The bank attributed the lower forecast growth rate toexpectations that local exports, agriculture, construction, and mining willmoderate in the second half of the year.
The bank, meanwhile, retains the 2019 growth forecast forVietnam at 6.8 percent.
According to ADB’s recent press release, Vietnam’s economicgrowth is likely to hold up well in the near term thanked to resilient domesticdemand, improved business conditions, and stable macroeconomic environment. Ananticipated increase in public capital expenditure in the second half of theyear is expected to boost investment growth.
The economy, however, remains vulnerable to external anddomestic challenges. Growth moderation in the major economies such as China,European Union, and Japan may dampen aggregated demand of global trade. Theescalating trade frictions around the world could adversely impact the exportperformance and FDI inflows to Vietnam. Inflationary pressure is likely topersist over the near term because of an increase in international oil pricesand an upsurge in food prices.
As such, ADB has revised forecast for local inflation rateto 4.0 percent in 2018 and 4.5 percent in 2019, up from the April estimates of3.7 percent and 4.0 percent, respectively.-VNA
VNA
