ESCAP says VN inflation could fall to 2.5%

Saturday, May 16, 2015 12:06

Workers sew clothes for export at HCM City-based Gia Dinh Textile and Garment Co. The Vietnamese economy is forecast to increase moderately at 6.1-6.2 per cent while inflation will likely drop to 2.5 per cent in 2015. — VNA/VNS Photo An Hieu
HA NOI  (Biz Hub) — The Vietnamese economy is forecast to increase moderately at 6.1-6.2 per cent due to to improving exports, investments and household purchasing demand.

The Economic and Social Commission for Asia and the Pacific (ESCAP) released its findings in Ha Noi on Thursday, noting that Viet Nam's inflation fell from double-digits to 4.1 per cent in 2014 and would continue dropping to 2.5 per cent in 2015.

Commenting on the regional economic prospects, Dr Albert Isgut from ESCAP's Macroeconomic Policy and Development Division said the Asia-Pacific economy would expand by a mere 5.9 per cent this year from 5.8 per cent last year, spurred by decreased inflation and a steep decline in global oil prices.

ESCAP has introduced an innovative new multidimensional inclusiveness index – a composite measure of 15 core indicators that track the economic, social and environmental dimensions of development in 16 countries, which together account for 92 per cent of the region's population and 88 per cent of its GDP.

It also called on developing economies to ensure equal opportunities, especially among women and girls, by expanding their access to quality education and healthcare.

The commission expressed its support for countries to create jobs by assisting small and medium-sized enterprises and industrialising rural areas, with the private sector holding a key role in inclusive development.

Additionally, ESCAP Executive Secretary Shamshad Akhtar urged Asia-Pacific governments to mobilise domestic resources, especially those from the private sector, for sustainable development.

Viet Nam's economy in 2016 was also expected to have slower growth than this year to stand at around 5.8 per cent, said resident representative of the IMF in Viet Nam, Sanjay Kalra, at a press briefing held yesterday to present the IMF's economic outlook for Asia and the Pacific Spring 2015.

For the whole Asia and Pacific region, the report says the economic outlook remains favorable, with the region projected to remain the global growth leader over the medium term.

Growth in the region is expected to hold steady at 5.6 per cent in 2015 and to ease slightly to 5.5 per cent in 2016.

Sanjay said Viet Nam, like many other countries in the region, should continue policies aimed at enhancing resilience and potential growth, particularly reforms on State-owned enterprises and the financial and banking sectors.

Viet Nam should also take steps to improve the efficiency of public investment and increase labour productivity, he said. — VNS

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