Vietnam's first quarter GDP slows to 5.4 pct as harsh weather hit agriculture

Vietnam's first quarter GDP slows to 5.4 pct as harsh weather hit agriculture

Vietnam’s GDP growth slowed in the first quarter of this year, as the economy was hit by an oil price collapse and agriculture production was marred by foul weather, the latest statistics released on Friday show.

The economy grew only 5.46 percent in the first three months from a year earlier, according to the General Statistics Office. That compares with the 6.11 percent year on year recorded in the first quarter of 2015.

Vietnam suffered unusual cold snaps in the north, whereas the central region was hit by drought and the south went into a salinity crisis, Nguyen Bich Lam, head of the General Statistics Office, told reporters in Hanoi.

Even though rising services contributed greatly to the GDP growth, the crimped agriculture and seafood sectors slowed the pace down by 0.16 percent, according to the statistics body.

The real-estate sector, in the meantime, grew by 3.43 percent year on year in the three-month period, the fastest pace since 2012, the General Statistics Office said.

“In brief, the economy has shown signs of slowing down,” Lam said. “The major economic balances are still ensured but inflation is rising again.”

Vietnam’s economy has also been hit by falling prices of global crude oil, with state revenue from crude oil dropping nearly 53 percent in the first quarter, according to the General Statistics Office.