It added the central bank is likely to cut its policy rates further, by 100 basis points, by the end of this year, noting that inflation has eased. "With the external environment likely to remain unfavourable in the second half of the year, we expect the economy to struggle in the coming quarters," Capital Economics said. Vietnam is a key exporter of electronics, garments and textiles, footwear and wood items, including for top global brands.Ĭapital Economics on Thursday revised down its forecast for Vietnam's GDP growth to 4.5% for this year, from 5.0%. The services sector grew 6.11% in the second quarter from a year earlier, while the agricultural sector grew 3.25%, and the manufacturing and construction sector expanded 2.50%, the GSO said.īut exports in the second quarter fell 14.2% from a year earlier due to weak global demand, the agency said, adding that imports fell 22.3%.Īnalysts say the sharp decline in imports could indicate a slowdown ahead in industrial production, as businesses reduce procurement of raw materials and equipment. First quarter growth was revised down from 3.32%.
Gross domestic product (GDP) in the second quarter grew 4.14% from a year earlier, faster than the 3.28% expansion in the first quarter, the General Statistics Office (GSO) said in a report.
Vietnam, a regional manufacturing hub, has been trying to prop up its economy amid slowing global demand, with the central bank cutting its policy rates four times so far this year and lawmakers extending a cut in value added tax. HANOI, June 29 (Reuters) - Vietnam on Thursday reported faster economic growth in the second quarter, driven by the services sector, despite a slump in trade that analysts say could signal a slowdown ahead.
0 kommentar(er)
