Vietnam to benefit from global economic recovery: WB

09-Oct-2014 Intellasia | Infonet/WB | 6:00 AM Print This Post

The recently released East Asia Pacific Economic Update by World Bank (WB) provided forecasts for the growth of East Asia economies including Vietnam.

The overall assessments of the East Asia region show that, excluding China, other developing countries in East Asia will achieve the growth of 4.8 percent this year before reaching 5.3 percent in 2015. This region benefits from the increased exports and the completed domestic adjustment period.

However, how each country will benefit from the recovery of the world economy shall depend on the investment activities and the export environment of that country.

Especially, China, Vietnam, Malaysia and Cambodia are those who have good positioning and will benefit from increased exports. This will also reflect the deepening integration into the global economy and the regional value chain – the factors that have adjusted the global trade over the past 20 years.

WB predicts that Vietnam’s macro economy has been more stable in 2014 with low inflation and strengthened balances. The slower economic growth has urged the government to loose monetary policies but the credit growth has still been limited by the health of banks and the demands of the private sector. WB predicts that Vietnam’s GDP will achieve the growth of four percent, 5.5 percent and 5.8 percent in 2014, 2015 and 2016 respectively.

WB also forecasts that the inflation rate will still remain at one digit. The inflation rate of the above-mentioned years will be 4.5 percent, five percent and five percent respectively.

 


Category: Economy

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