GDP growth target in doubt, inflation rate higher than predictedVietNamNet Bridge - Economists have warned that Vietnam may fail to reach a 6.7 percent GDP (gross domestic product) growth rate this year, and the inflation rate may exceed 5 percent. Economists have warned that Vietnam may fail to reach a 6.7 percent GDP (gross domestic product) growth rate this year, and the inflation rate may exceed 5 percent. The big loss in the agricultural sector is one reason for slower GDP growth. It is necessary to consider other factors including natural calamities, bad weather which affects agriculture, the scheduled minimum wage increase, money supply increase and pressure from exchange rates.“The inflation rate is likely to exceed 5 percent if we cannot control the money supply,” Long said. There are many factors that threaten Vietnam’s growth in 2016.The natural calamities in the central region and Central Highlands, the saline intrusion in Mekong River Delta and the mass fish deaths in the central region all have caused damage worth VND17 trillion, or 0.9 percent of the total value the national economy can creates within six months.Meanwhile, Vietnam also witnessed a sharp fall in export volume and value in the first half of the year.

Source: VietNamNet News July 17, 2016 03:00 UTC