WB predicts 5.7 percent GDP growth for Vietnam

WB predicts 5.7 percent GDP growth for Vietnam

Vietnam is expected to achieve around 5.7 percent economic growth in 2012 and 6.3 percent in 2013, according to a recent forecast by the World Bank (WB) in Hanoi.

Year-end inflation is predicted to stay at 8-9 percent in 2012 and fall to 6 percent next year.

According to WB experts, Vietnam’s economic environment has improved in recent times with slowing inflation, stable exchange rates, rising reserves and a reduction of economic risks.

In particular, the nation’s export turnover rose sharply in the first five months of the year, mostly contributed by the export of mobile phones and spare parts (up 154 percent), and electronics and computers (up 100 percent).

However, the WB experts warned that Vietnam’s economy is slowing down as a consequence of the global economic downturn and macroeconomic stability policy.

Over the past two months, the State Bank of Vietnam has constantly slashed its basic interest rates by a total of 3 percent. Yet, the WB experts said the country’s monetary policy is mainly based on administrative orders, not the market.

They warned that loosening the monetary policy too swiftly could make high inflation boomerang one day

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