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World Bank forecasts Vietnam's economic growth to hit 6.3 percent

Staff Writer |
The World Bank (WB) forecast here on Thursday that Vietnam's gross domestic product (GDP) will expand by 6.3 percent in 2017.

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The prediction was made in the WB's East Asia and Pacific Economic Update launched in Hanoi.

Accordingly, Vietnam's medium-term outlook remains favorable as GDP growth is projected to improve gradually in 2017-2019 period.

Growing by 6.3 percent this year, the country's GDP is expected to expand by 6.4 percent in 2018 and 2019, driven by robust domestic demand and export-oriented manufacturing, said the bank.

Earlier this week, the Asian Development Bank forecast that Vietnam's GDP growth would reach 6.5 percent this year while the country's government set a target of 6.7-percent GDP.

Meanwhile, inflation pressures overall are expected to remain moderate at 4 percent in the 2017-2019 period thanks to global subdued commodity and energy prices.

On the fiscal front, the WB expected Vietnam to experience some fiscal consolidation as well as acceleration of divestment though at a gradual space that would contain further rise of public debt.

Despite positive medium-term outlook, the Vietnamese economy still sees downside risks.

Domestically, delayed implementation of structural and fiscal reform can intensify macroeconomic vulnerabilities and lower potential growth.

Externally, intensifying uncertainty of global economy could dim Vietnam's growth outlook through trade and investment channels, the bank assessed.

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