World Bank revises down Vietnam’s GDP forecast again

By Toan Dao   July 19, 2016 | 04:19 pm PT
Drought continues to place negative impacts on the economy.

In its latest report, the World Bank has revised down its estimate for Vietnam’s gross domestic product (GDP) for this year to 6 percent from the previous 6.2 percent, Achim Fock, Acting Country Director for the World Bank in Vietnam said in a statement released Tuesday.

The slower growth is attributed to the impacts of a severe drought on agricultural production and falling industrial growth.

“We expect GDP growth of 6 percent this year. Despite slightly softer growth this year, Vietnam’s medium term outlook remains positive,” Fock said.

In April this year, the World Bank revised down the forecast of Vietnam’s GDP growth in 2016 to 6.2 percent, from the original 6.5 percent mainly due to the severe drought and salinity in the southern region.

Drought in the Mekong Delta. Photo by VnExpress/Cuu Long

Drought in the Mekong Delta. Photo by VnExpress/Cuu Long

Vietnam achieved GDP growth of 5.5 percent during January-June, lower than 6.3 percent recorded a year earlier.

The central government is pushing for faster disbursement of state budget for public investment projects and has requested the state oil giant PetroVietnam to raise output to boost growth towards the 6.7 percent GDP growth target for this year.

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