Gov’t targets 2019 GDP growth at 6.8%
Gov’t targets 2019 GDP growth at 6.8%
The Government is aiming for a softer gross domestic product (GDP) growth rate of 6.8% this year and an inflation ratio of less than 4%, according to a new resolution on key tasks and measures to execute the socioeconomic development plan and the State budget estimates for 2019. In 2018, the country achieved a ten-year-high GDP growth rate of 7.08%.
Under the Government’s Resolution No.1 of 2019, the all-year plan targets stabilizing the macroeconomy; curbing inflation; raising the productivity, quality, efficiency, self-reliance and competitiveness of the economy; improving the investment and business environment; and promoting economic growth.
More radical changes should be made while ensuring strategic breakthroughs and restructuring the economy, aligned with growth mode transformation.
The plan also aims to promote innovation and creativity and the application of scientific and technological advances, as well as make full use of the Fourth Industrial Revolution.
According to the resolution, special attention should be given to developing healthcare, education, training, culture, and society; ensuring social security; and improving the material and spiritual lives of residents.
The plan aims to tighten the management of natural resources and environmental protection; minimize the adverse effects of natural disasters; and respond to climate change.
Other targets are to boost administrative and judicial reforms; streamline the State apparatus and lower the number of public servants; prevent corruption and wastefulness; enhance law enforcement; consolidate national defense; and enhance diplomatic work and international integration.
Key tasks and solutions
The key tasks and solutions to realize the set targets include consolidating the macroeconomic foundation, curbing inflation and securing the major balances of the economy, the resolution noted.
To this effect, the Government stressed the importance of the effective adoption of proactive, flexible and prudent monetary policies alongside fiscal and other macroeconomic policies.
The Government plans to restructure the State budget, execute the Law on the Management and Use of Public Assets and keep a close watch on foreign loans.
At the end of this year, the outstanding public debt balance is expected to reach 61.3% of the GDP; the government debt, 52.2%; and the nation’s foreign debt, 49%.
The Government plans to restructure revenue sources and expand tax bases to raise the State budget revenue by some 5% compared with the estimate.
The State budget needs to be restructured toward increasing the proportion of capital for development investment to some 27%-27.5% of GDP and reducing regular expenditure to 63%-63.5% of the total State expenditure. Also, State budget overspending must be maintained at less than 3.6% of the GDP.
The Government is set to boost export turnover by 8%-10%, control trade deficit at under 2% and raise the total retail sales of goods and services by some 12%.
Further, the Government aims to bring the non-performing loan (NPL) ratio on the balance sheet down to below 2%.
The Government is also focusing on expanding non-cash payments in daily transactions through new payment methods and financial technology companies.
