Vietnam’s economy is projected to grow 6 percent in 2022 and 7.2 percent in 2023. (Photo: VNA)Speaking at a May 12 forum on forecast for Vietnam’seconomy in 2022-2023 held by the Economy & Forecast Review, Painchaud saidVietnam’s economy is projected to grow 6 percent in 2022 and 7.2 percent in2023.
Inflation will rise, but it is still lower than the ceiling set by the State Bank of Vietnam of 4 percent, the IMF representativeadded.
Vietnam has issued macro-economic and fiscalpolicies to support households and businesses affected by the COVID-19pandemic, including those on tax reduction and expansion.
Notably, the Programme for Recovery and Developmentis timely and well-placed to entrench the recovery, he said, stressing thatfiscal stimulation within the programme in 2022-2023 has spurred sustainableand inclusive growth.
Vietnam has issued macro-economic and fiscalpolicies to support households and businesses affected by the COVID-19pandemic, including those on tax reduction and expansion.
Notably, the Programme for Recovery and Developmentis timely and well-placed to entrench the recovery, he said, stressing thatfiscal stimulation within the programme in 2022-2023 has spurred sustainableand inclusive growth.
Resident Representative of the International Monetary Fund (IMF) for Vietnam Francois Painchaud speaks at the event. (Photo: VNA)The growth rate of 5 percent in the last quarter of2021 and the first three months of this year is lower than the pre-pandemiclevel as domestic demand and tourism have yet to be fully recovered.
He also pointed out the high unemployment rate andlingering impacts of the pandemic on households with lower income and small- andmedium-sized enterprises (SMEs).
“Growth risks are tilted to the downside whileinflation risks are tilted to the upside,” he said, noting that the mostimmediate risks lie with geopolitical tensions and a slowdown in China.
Other risks include the tightening of globalfinancial conditions and developments in the domestic real estate and corporatebond markets.
Given this, he suggested Vietnam give policypriorities to entrenching the recovery, preserving financial stability andpromoting inclusive growth.
Policymaking should be agile, while fiscal policyshould take the lead in policy support, especially if downside risks materialise,he continued.
Medium-term policies should be revenue mobilisation,modeirning monetary policy, increasing the resilience of the banking system,and decisive structural reforms, he said./.
VNA
