Financial commission believes 6.2% GDP growth feasible next year

The National Financial Supervisory Commission said that the target of 6.2 percent Gross Domestic Product (GDP) growth rate next year is feasible in a socioeconomic report announced yesterday.

According to the report, GDP growth will be advantageous in 2015. Aggregate demand will recover and purchasing power will improve thanks to low inflation rate in 2014.

Private investment will look up because of better macroeconomic environment together with institution reforms.

Foreign Direct Investment (FDI) attraction will further increase with prospects from the Trans-Pacific Partnership Agreement that will be signed in 2015.

Aggregate supply will be better thanks to economic restructuring. The world’s commodity price reduction will create conditions for businesses to cut down production costs and increase domestic supply sources.

The commission predicts that domestic cost price will drop 3 percent after calculating the ratio of petrol product value per total industrial value. The prediction is also based on a 33 percent drop forecast in the world crude oil price. Domestic petrol price is supposed to reduce the same rate.

According to the commission, inflation will not fluctuate much because the aggregate demand is expected to improve at a reasonable level and not cause pressure on inflation. Core inflation will swing around 3 percent.

By Bao Minh – Translated by Hai Mien

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