The International Monetary Fund (IMF) has made a slight increase to its global growth outlook for 2023, due to "surprisingly resilient" demand in the United States and Europe, easing energy costs and the reopening of China's economy after Beijing abandoned its strict COVID-19 restrictions.
It still sees the pace of global growth falling this year compared with 2022, but by a smaller margin than it predicted in October. The IMF is now forecasting 2.9% growth for 2023 – up from a 2.7% forecast in October – versus 3.4% growth last year.
However, India is targeting seven per cent growth in economy this year and we expect it to cross it in the next five years, External Affairs Minister S Jaishankar said on Saturday and adding that New Delhi will try to stay in the 7-9 per cent range at least for a decade and a half.
"We are targeting 7 per cent growth this year, but we expect it to improve in the next five years. And definitely, we would stay in 7-9 per cent range at least for a decade and a half," Jaishankar said at the Raisina@Sydney Business Breakfast.
"And you can today see the same reflected in the investment climate, both in the flow of FDI, FII as well as in the investments which the government itself is leading the capital outlay in this year's budget," he added.
"Encouraging greater investments should be the focus, especially during CEO Forum meets or the Prime Minister and Trade Ministers visit," he suggested.
Also, Vietnam is targeting an annual average economic growth of 7% during the 2021-2030 period, according to a draft of the national master plan presented at an extraordinary session of the National Assembly in January.
During the 2031-2050 period, Vietnam will strive to record an annual economic growth of 6.5-7.5% and raise the GDP per capita to 27,000-32,000 USD, making Vietnam a developed country with high income.
According to the draft plan, the national development space must be organised in an effective and unified manner, ensuring intra-regional linkages, and focusing on several areas with advantages in terms of geographical location, socio-economic infrastructure and high-quality human resources.
As global demand is slowing and adversely affecting export countries including Vietnam, fiscal policy will significantly help support Vietnam’s economic growth in 2023, experts said.
Deputy Minister of Industry and Trade Do Thang Hai said the fall in global import demand for Vietnam’s strong goods would negatively impact the country's exports this year.
According to Hai, the global economy continues to face several challenges, particularly in the world's biggest import markets, such as the US, the EU and Japan.
