World Bank downgrades growth

by VTV420 July 2016 Last updated at 07:37 AM

VTV.vn - The World Bank released its report on Vietnam’s economic development in 2016 on Tuesday, in which the forecasted GDP growth rate was cut by 0.2% compared to the last report.

Vietnam’s economic growth is showing signs of a slowdown. The World Bank forecasted the country’s GDP growth this year at 6%, 0.2% down on the previous report a few months ago. The fall reflects is the economic developments during the 2nd quarter.

The decline in agriculture was offset by growth in the retail sector, the construction sector was also bolstered by rising credit. Experts also said that prices have increased but are still under control. The World Bank’s predicted inflation rate of 4% is still lower than the target of 5% for this year. But experts also warned about challenges to Vietnam’s fiscal policies from an aging population.

However, the WB stated that the medium-term economic outlook for Vietnam remains positive as macroeconomic stability had been maintained. Vietnam will need in-depth restructuring to increase labour productivity as well as better standards and monitoring to protect the environment.

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