The Vietnamese economy shifted into a lower gear this year as adverse weather conditions damaged a large share of agricultural output, which accounts for almost 20% of GDP. The economy grew 5.6% on an annual basis in Q2, which was broadly stable compared to Q1 but represents a clear deceleration from the growth rate tallied in Q2 2015. Against the backdrop of a slowing economy, Prime Minister Nguyen Xuan Phuc announced in late July that the government will continue to push forward measures aimed at supporting businesses and spurring domestic demand to reach the country’s yearly growth target of 6.7%. He nevertheless added that the government will not implement measures that could cause the economy to overheat, as happened in 2011, when inflation spiked and the currency depreciated sharply. This suggests that the government is also considering lowering the growth forecast to avoid these past mistakes.
Vietnam Economy Data
(August 23, 2016)