VN sustains highest regional growth
Ha Noi — Viet Nam’s GDP almost hit the Government’s growth target of 7.5 per cent this year, despite war in Iraq and the SARS outbreak.
The Asian Development Bank’s Outlook 2003 Update, released on Tuesday, stated the country’s gross domestic product grew by 6.9 per cent in the first half of this year, the highest in Southeast Asia.
Strong domestic demand, moderately expansionist monetary and fiscal policies and prudent economic management prompted the growth.
The report projected Viet Nam’s 2003-04 GDP to be about 7 per cent.
Revenue raised in the first of the year would help reduce the deficit to about 4.8 per cent of GDP, slightly lower than previous estimates.
The consumer price index, which increased by 2.7 per cent in the first eight months, would level off at 4 per cent for the year.
Although US quota limits could affect textile and garment exports in the second half of 2003, other exports would offset the problem.
The bank projected exports to grow by 10.5 per cent. The account deficit could widen to about 6 per cent of GDP due to strong import demand.
Foreign direct investment, remittances from Vietnamese living overseas and stable development assistance would finance the deficit.
Southeast Asia’s growth would improve to 4.9 per cent in 2004 from 3.9 per cent this year. — VNS
