Forecast of Vietnam GDP growth in 2020: to be among world’s highest

Forecast of Vietnam GDP growth in 2020: to be among world’s highest

According to the International Monetary Fund (IMF), the World Bank (WB) and many world economic organizations, Vietnam’s GDP in 2020 is expected to have the highest growth rate in the world.

Vietnam Economy 2020 – the bright spot in the middle of the pandemic

In the midst of the Covid-19 epidemic, the global economy in 2020 was seriously affected: supply chain was interrupted, production stagnated. According to the World Economic Outlook report of the IMF announced in October 2020, a series of economies in ASEAN were forecasted to have negative growth, such as Indonesia (-1.5%). , Thailand (-7.1%), Malaysia (-6%), Philippines (-8.3) and Singapore (-6%).

Việt Nam duy trì tăng trưởng dương giữa bối cảnh đại dịch
Vietnam maintained positive growth amid pandemic

Source: Nikkei index chart

Meanwhile, Vietnam is one of the few countries forecasted positive growth by many world economic organizations. The Asian Development Bank (ADB) forecasts Vietnam’s growth will reach by 1.8%, while the World Bank (WB) forecasts it to be 2.8%. According to the IMF at the end of the online consultation session during October 15 – November 13 with Vietnam.

“Thanks to Vietnam’s swift actions to contain the health and economic fallout of Covid-19, the country’s growth this year will reach by 2.4%.” – Ms. Era Babla Norris, Head of Delegation Article IV, Asia-Pacific Department of the IMF said.

How Vietnam’s economy is stable in the midst of Covid-19

According to Ms. Era Dabla Norris, IMF representative, Vietnam’s fiscal response has largely been geared towards supporting vulnerable households and firms, have created favorable conditions for Vietnam to implementing effective response measures to overcome the “storm” COVID-19.

Ket hop chinh sach tai khoa va chinh sach tien te

In addition to the Government’s fiscal policies such as promoting public investment, reducing taxes for businesses, measures to loosen the State Bank’s monetary policy are also introduced, in order to reduce interest rates, restructuring debt, helping businesses reduce liquidity pressure, lower cost of capital.

“We welcome the continuous efforts to improve the business environment in Vietnam”, said Ms. Norris, IMF representative.

According to the IMF, Vietnam’s economy will recover strongly in 2021 with GDP reaching 6.5%, inflation may be at 4%. The positive data on economic growth is a testament to foreign investors seeing the stability and development potential of Vietnam’s economy.

Source: VTV online newspaper

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