Growth in Vietnam expected to reach 6% in 2022: IMF

08 Jul '22

1 min read

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Vietnam’s economy is forecast to grow up to 6 per cent this year as the rates of retail sales, industrial production, and firm entry continue to increase, according to the International Monetary Fund (IMF). The country’s fiscal policy is projected to remain supportive, particularly owing to the implementation of the Program for Recovery and Development (PRD).

The labour market’s recovery is falling behind since the rate of unemployment is still high, IMF Executive Board said in a statement after wrapping up its Article IV Consultation with Vietnam. Although inflation in Vietnam has shot up recently because of increasing commodity prices and supply-chain disruptions, it remains below the central bank’s inflation ceiling as a result of economic slack and relatively stable food and administered prices, the statement said.

The IMF Executive Board recommended that risks connected to problem loans, real estate, and corporate bond markets need to be closely monitored and macroprudential frameworks should be reinforced.

During an Article IV Consultation, an IMF team of economists visits a country to assess economic and financial developments and discuss the country's economic and financial policies with government and central bank officials.

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