Standard Chartered: Viet Nam to grow 3% in 2020
VGP - Standard Chartered Bank has forecast that the growth of Viet Nam’s economy will slow down to 3% in 2020, the lowest rate over the past years due to weak global demands.
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Despite positive economic activities, the economy would be affected by external challenges and suffer from lower growth.
The forecast was announced at the Global research report in Q2 titled “The aftershock.”
The bank forecasted that production and service sectors would rebound, serving to boost growth in the second half. Production would expand about 1.5%, contributing 0.5 percentage point to GDP growth rate, lowever than 2.8 percentage point in 2019.
Construction activities would slow down, dragging by market psychology and low FDI inflows. However, infrastructure investment would become stronger in comparison with 18 previous months thanks to the Government-sponsored demand stimulation program.
In the short term, trade activities would be on the rise by Chinese higher demands. However, the global weak demands would hamper trade growth. Trade balance would be surplus.
Standard Chartered projected that the FDI inflow would decrease in 2020, reaching US$ 13 billion due to increasing disability and gloomy investment sentiments./.
By Kim Anh
