HSBC lowers VN’s economic growth forecast to 6.6%
The Vietnamese economy will grow 6.6% in 2019, slightly decreasing from last year’s figure of 7.1%, according to the HSBC.
In Q1, the GDP growth rate in the first quarter was estimated at 6.8%, down from 7.3% in the previous quarter, but higher than expectation. Production was attributed to making the biggest contribution to growth while the service sector continued to experience outstanding developments.
HSBC said the economy still shows strong signs of growth. In March, the Purchasing Managers' Index (PMI) rose, manufacturing and new export orders increased steadily.
The industry remains optimistic based on the likelihood of improved demand and investment.
Foreign direct investment (FDI) increased steadily since the beginning of the year, and is expected to sustain domestic growth despite external difficulties.
Low inflation will enable the central bank to further focus on growth.
The Government is expected to continue with reform of health-related services.
The HSBC reported that domestic demand remained strong as growth continued in the wholesale, retail and transportation sectors.
The main negative in the first quarter was the slowdown in the growth of the finance sector as credit growth slowed since the second half of 2018 to control inflation./. - VGP -