VN’s economic growth may slow to 2.7% this year but rise to 7% in 2021: IMF
VGP – Viet Nam’s economic growth is seen slowing down to 2.7% this year due to the coronavirus pandemic, but may pick up to 7% next year, the International Monetary Fund (IMF) said on Monday.
The Southeast Asian country’s strict measures to contain the virus, the global recession and weak domestic demand are expected to slow its economic growth this year from an average of about 7% in 2018 and 2019, the IMF representative in Viet Nam, Francois Painchaud, said.
“Some sectors are expected to be severely impacted, especially the tourism, transportation, and accommodation industries,” he told Reuters in an emailed statement.
He said growth is expected to recover as containment measures are lifted, reaching 7% in 2021, supported by monetary and fiscal easing, Viet Nam’s relatively strong macroeconomic fundamentals, and a gradual recovery in external demand.
Earlier, Standard Chartered lowered Viet Nam’s growth forecast to 3.3%. The bank forecast growth rebounding to 6.5% in 2021 given an expected demand recovery and the low base from 2020.
The Asian Development Bank (ADB) projected that the Covid-19 pandemic could see Viet Nam’s growth slow down to 4.8% this year, but it would remain among Asia’s fastest growing economies.
Meanwhile, the Government was determined to attain an economic growth of over 5% in 2020./.