HSBC optimistic on Vietnam’s economy in 2012

The Hongkong and Shanghai Banking Corporation (HSBC) is optimistic about Vietnam’s economic growth, according to a report released on Monday, February 20, predicting that the Vietnamese currency will be relatively more stable in 2012.

The report states that Vietnam’s GDP growth rate was 5.9 per cent in 2011 and is estimated at 5.7 per cent in 2012.

The country’s inflation is easing and expected to reach a single digit by the end of this year, creating favourable conditions that will allow the State Bank of Vietnam to cut interest rates.

HSBC report also predicts that weaker import demand and   weakening of exchange rate will help stabilise the Vietnam dong in 2012.

The trade deficit is also expected to stabilise at US$10 billion in 2012, as compared to $9.8 billion in 2011.

The report indicates a period of slow growth in 2012 due to cautious spending and weaker exports, but that the country is heading in the right direction this year despite global economic uncertainty.

By B. Minh - Translated by Uyen Phuong

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