THE International Monetary Fund (IMF) predicts Vietnam’s economic growth this year will slow to 2.7% due to the corona virus (COVID-19) pandemic. However, the Vietnamese economy is also expected to soar up to 7% next year.
Southeast Asia’s tighter measures to curb the spread of the corona virus plus a global recession and a decline in domestic demand are the main factors slowing economic growth this year.
In fact, according to IMF representative in Vietnam, Francois Painchaud, Vietnam’s average economic growth in 2018 and 2019 reached 7%.
“Some sectors are expected to be severely affected, especially the tourism, transportation and accommodation industries,” he told Reuters in a statement by email.
He added, growth was expected to recover when measures to contain the spread of the corona virus were lifted. In addition, with the support of monetary and fiscal easing, Vietnam’s relatively strong macroeconomic fundamentals, and a gradual recovery in external demand will make Vietnam’s economy recover to a level of 7% in 2021. [sources/photo special]