Vietnam's real GDP growth forecast has been revised upwards from 5.5percent to 6.3 percent for 2011 thanks to a good result of the fourthquarter in 2010, the Research and Markets magazine said in its Vietnamquarterly report.
However, the report warned thatmounting inflationary pressures, a persistent trade deficit and fiscalimbalances remain outstanding risks that could undermine macroeconomicstability over the coming months.
The report saidthat Vietnam 's real GDP growth came in at a better-than-expected6.8 percent in 2010, led by a strong performance in the constructionsector.
Vietnam 's fiscal deficit narrowedfrom 6.6 percent of GDP in 2009 to 4.7 percent of GDP in 2010, largelyin line with its previous forecast of 4.6 percent.
Despite an improvement in the country's fiscal position, the reportwarned that social expenditures as a percentage of total fiscalexpenditure have continued to rise since 2007. Withdrawing thesesubsidies will prove a challenging task.
Moreover,rising food and fuel prices remain a significant threat that couldtranslate into heavier government subsidies in 2011, the report said./.
However, the report warned thatmounting inflationary pressures, a persistent trade deficit and fiscalimbalances remain outstanding risks that could undermine macroeconomicstability over the coming months.
The report saidthat Vietnam 's real GDP growth came in at a better-than-expected6.8 percent in 2010, led by a strong performance in the constructionsector.
Vietnam 's fiscal deficit narrowedfrom 6.6 percent of GDP in 2009 to 4.7 percent of GDP in 2010, largelyin line with its previous forecast of 4.6 percent.
Despite an improvement in the country's fiscal position, the reportwarned that social expenditures as a percentage of total fiscalexpenditure have continued to rise since 2007. Withdrawing thesesubsidies will prove a challenging task.
Moreover,rising food and fuel prices remain a significant threat that couldtranslate into heavier government subsidies in 2011, the report said./.
