NFSC forecasts Vietnam’s 2017 GDP growth over 6.7 percent

In a report released lately, the National Financial Supervisory Commission of Vietnam (NFSC) has forecast Vietnam’s economy will grow 7.5-5.5 percent for the fourth quarter and over 6.7 percent in all of 2017.

NFSC forecasts Vietnam’s 2017 GDP growth over 6.7 percent

NFSC said the measures adopted by the Vietnamese Government to improve investment environment and push enterprise growth are an impetus for better economic performance in the whole year.
GDP leaped in the third quarter thanks to the country’s recovering production, especially in the processing industry and manufacturing. Additionally, the recovery stimulated supplies and consumptions are steadily improved contributing to improve the third quarter.
For instance, in nine months of the year, total retail of commodities and services have seen a year-on-year increase of 9.2 percent ( the country has seen a surplus of $1 billion) meanwhile the trading balance of the quarter strongly recovered after losses in two quarters.
Investment capital also continued to hike compared to the same period last year. In the fourth quarter, consumption and investment demands are forecast to increase sharply as the rate of disbursement of investment in capital construction is accelerated.

Moreover, exports will continue to rise thanks to favorable development in the world economy and global trading.
The Commission said the inflation is maintained stable as food and foodstuff prices are less likely to fluctuate. If there will be no a sudden adjustment of public service prices in the last months of the year, inflation for the whole 2017 would only increase by approximately 3 percent over the same period last year.
In case that there will be a hike in public service prices by 25 percent, inflation will be up 1 point percent, or if the exchange rate between Vietnam dong and the US dollar soars by 1 percent, inflation will increase 0.17 point percent; if electricity price is up 8-10 percent, inflation will be 0.3-0.4 point percent.

By BAO MINH – Translated by UYEN PHUONG

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