WB raises Vietnam's economic growth forecast to 6.8%

Friday, 2018-06-08 11:38:08
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Vietnam's strong economic growth is predicted to moderate to 6.6% in 2019 and 6.5% in 2020 (illustrative image)
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NDO - The economic growth of Vietnam will reach 6.8% in 2018 according to the latest World Bank (WB) forecast, an increase of 0.3% over the previous forecast provided by the WB in April this year.

In its report "Global Economic Prospects: East Asia and Pacific - The Turning of the Tide?" released on June 6, the WB stated that in the medium-term, Vietnam's strong economic growth is predicted to moderate to 6.6% in 2019 and 6.5% in 2020.

The good prospects were attributed to the expansion of agriculture and production for exports. The report stated that FDI capital will continue to pour into Vietnam thanks to the bright economic prospects and the Government's efforts on policy adjustments to attract foreign investment.

According to the report, although inflation has increased, it remains below the target set by the Vietnamese Government.

The WB also predicted that the global economy will grow at 3.1% in 2018 before slowing down over the next two years due to the deceleration of advanced-economy growth, while the recovery in key commodity-exporting emerging markets and developing economies levels out.

Meanwhile, in the East Asia and Pacific, economic conditions in developing countries is forecast to remain favourable in 2018 as growth across the region remains solid while exports have soared in both volume and value.

However, the region may face stronger-than-expected regional growth, which, in addition to increased protectionist tendencies in some large economies, will create uncertainty about trading relationships in the future, the report said.