HCMC – The World Bank has lowered its economic growth forecast for Vietnam to 5.2% from its earlier forecast of 5.7% given in May, citing unfavorable environments in the region and the world.

In its East Asia and Pacific Economic Data Monitor released on Monday, the global lender also cut its economic growth forecast for Vietnam in the next year at 5.7 percent compared with earlier estimate at 6.3%.

In the East Asia and Pacific Economic Data Monitor issued in October, the World Bank also forecasted that growth the of East Asia and Pacific region might slow down by a full percentage point, from 8.2% in 2011 to 7.2% this year, before recovering to 7.6% in 2013.

According to the international financial institution, exports growth for East Asia slowed to 4.5% year-on-year in the second quarter of 2012 due to impacts of external environment, easily outpaced by import growth of 5.2%, and trade as a whole now no longer contributed to the region’s growth.

With the exception of China and Vietnam, all of the other major economies in the region saw a decline in exports, a sharp change from the 15–20% export growth rates recorded in 2011.

Imports, meanwhile, slowed down for most countries as well, but less rapidly so, and trade balances and current account balances deteriorated across the region in the first half of the year compared to last year.

In the Asian Development Outlook update released on October 3, the Asian Development Bank also forecast Vietnam GDP to grow by 5.1% this year and 5.7% in 2013, down from its earlier projection.

Source: http://english.thesaigontimes.vn