NFSC projects economic growth of 6.8% for Vietnam in 2016

Tuesday, 2015-12-29 16:42:42
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NDO - The National Financial Supervisory Commission (NFSC) has forecast that Vietnam’s economy will expand by 6.7-6.8% next year, slightly lower than 2015, with inflation running at 2-3%.

The NFSC said in a report that the global economy and trade would recover in 2016 but still face many uncertainties. Commodity prices are expected to continue falling but at a slower pace.

Except for the US which will raise interest rates gradually, most countries in the world will continue to pursue a loose monetary policy, according to the NFSC.

In 2015, Vietnam’s economy made a strong recovery with growth at 6.88%, the highest in five years, and inflation kept at the lowest level in a decade. Economic restructuring recorded initial successes, the business environment improved and international economic integration deepened.

However, domestic enterprises were still struggling while there was not much room left for support from monetary and fiscal policies.

According to the NFSC, expected low inflation in 2016 will give room for further upward adjustments to a number of essential goods and services, as well as exchange rates.

The committee, however, noted that the government still needs to be cautious with pressure from the global economy on interest and exchange rates as well as growing pressure on public debt.