Vietnam: WB forecasts Vietnam’s GDP growth of 6.3% – 14 Jul 2017

  • The World Bank (WB) on 13 Jul 17 released its bi-annual report on Vietnam’s economy, keeping its country GDP forecast at 6.3% in 2017 following an economic boost in 2Q17.
  • After a disappointing performance in 1Q17, Vietnam’s economy kicked on in 2Q17, with an estimated GDP of 5.7% 1H17.
  • Manufacturing and retail trade were the two biggest contributors to GDP growth in 1H17 at 1.8 and 0.6% points respectively, according to the report.
  • The WB projection for Vietnam’s GDP growth is significantly lower that the country’s target of 6.7%, while the International Monetary Fund last week also lowered the GDP outlook for Vietnam from 6.5% to 6.3%.
  • The WB also projected the inflation rate to hover around 4.5% in 2017 and 2018.
  • The WB suggested that the Vietnamese Government consider solidifying macroeconomic stability and rebuilding policy buffers while trying to lower the fiscal deficit and contain risks from rapid credit growth.

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