VINACHEM

The national economy has bottomed out since the third quarter of 2013 and is now on track to recovery, according to the National Financial Supervisory Commission (NFSC).

A NFSC report shows the economy has kept inflation at a low rate, stabilised the currency market, lowered deposit rates, and brought the dolarisation of the economy under control, thus consolidating investor trust.

Industrial production has begun to gain steam as material imports for production rose and inventory decreased.

The committee is optimistic about the country’s economic growth in 2014 thanks to improvements in aggregate demand, private investment, and exports.

It forecasts the economy will grow by 5.8% and inflation will stay at 5%, without calculating fluctuations in the prices of food, essential products and public services.

However, it says the economy still faces a number of challenges, including slow improvements in aggregate demand, difficulties in agricultural production, and heavy reliance on the foreign direct investment (FDI) sector.

The NFSC affirms that the restructuring of credit organisations has obtained initial results, helping the banking system perform more stably. In addition, favourable economic policies have helped fuel aggregate demand and credit growth.