The Financial Express

Vietnam's growth to slow to 2.7pc this year but rise to 7pc next year: IMF

Reuters | Published: May 11, 2020 11:19:13 | Updated: May 13, 2020 15:41:03

File photo used for representational purpose File photo used for representational purpose

Vietnam’s economic growth is seen slowing down to 2.7 per cent this year due to the coronavirus pandemic, but may pick up to 7.0per cent next year, the International Monetary Fund (IMF) has said.

The Southeast Asian country’s strict measures to contain the virus, the global recession and weak domestic demand are expected to slow its economic growth this year from an average of about 7.0 per cent in 2018 and 2019, the IMF representative in Vietnam, Francois Painchaud, said on Monday.

“Some sectors are expected to be severely impacted, especially the tourism, transportation, and accommodation industries,” he told Reuters in an emailed statement.

He said growth is expected to recover as containment measures are lifted, reaching 7.0 in 2021, supported by monetary and fiscal easing, Vietnam’s relatively strong macroeconomic fundamentals, and a gradual recovery in external demand.

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