Economic growth forecast to continue recovery in second half

The National Financial Supervisory Commission has issued a macroeconomic report which forecast Vietnam’s economic growth will continue its recovery trend in the last two quarters to reach 5.7-5.8 percent this year.

In the first seven months, total retail sales of goods and service revenue increased 6.3 percent from 4.86 percent a year ago.

Consumer confidence index (CCI) in June was much improved although a May decrease because of the East Sea dispute.

The stock market was on a decline in the first two weeks of May but still grew better than the same period in 2013. VN-Index was up nearly 20 percent at the end of July compared to last December.

Inflation rate was always lower than 5 percent this year except January when the traditional Tet Festival fell on. Core inflation rate has been kept under 4 percent since April.

The commission predicted that inflation would continue to be under control from now until the end of the year and might approximate 5 percent.

In the banking system, both deposit and loan interest rates have reduced. However, the former has reduced more quickly than the later.

 In July, the deposit interest rate in Vietnamese dong averaged 5.53 percent while the loan interest rate averaged 10.08 percent per year.

The commission said that aggregate demand has been improved in seven months but still low through a continual decrease of inflation rate since last October.

The government should continue measures to assist the aggregate demand in the rest months to boost economic growth and obtain the target of 5.8 percent this year, the report said.

By Bao Minh – Translated by Hai Mien

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