Vietnamese economy to grow 6.3% in 2017: World Bank

The World Bank’s bi-annual report recognizes the strong momentum of Vietnam’s economy

Employees of a fruit processing company are seen at work.

Vietnam’s medium-term outlook remains positive, with real GDP growth projected to accelerate slightly to 6.3 percent in 2017, the World Bank said in a report released on Thursday.

The projected growth is slightly behind the 6.7 percent target set by the government. The growth last year was 6.2 percent.

Vietnam’s GDP expanded by 5.7 percent during the first half 2017, while inflation has so far moderated and core inflation remains low, at less than two percent, according to the bi-annual outlook report.

“Vietnam’s economy is strong, as a result of strong momentum of Vietnam’s fundamental growth drivers — domestic demand and export-oriented manufacturing,” Sebastian Eckardt, Lead Economist and Acting Country Director for the World Bank in Vietnam, said in a statement.

“These are good conditions to address critical structural bottlenecks to medium term growth while solidifying macroeconomic stability and rebuilding policy buffers.”

The World Bank attributed its 6.3 percent growth projection to Vietnam’s buoyant domestic demand, rebounding agricultural production, and strong export-oriented manufacturing, aided by a recovery in external demand.

“Inflationary pressures will remain moderate, reflecting stable core inflation, lower food and energy prices and diminishing administrative price hikes,” the report reads.

“Over the medium term, growth is projected to stabilize at around 6.4 percent in 2018-19, accompanied by broad macroeconomic stability.”

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