Hanoi’s GRDP growth estimated at 5.8% in Q1

Hanoi's gross regional domestic product (GRDP) growth was estimated at 5.8% year-on-year in the first quarter of 2023, higher than the national average of 3.32%, according to the municipal statistics office.

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Electronics production at Noi Bai Industrial Park. Photo: Pham Hung/The Hanoi Times

Although the city's economic growth in the first quarter was lower than the 5.91% in the same period last year, it is still "a remarkable and significant achievement given the current global economic conditions characterized by a sluggish growth rate and a decline in international trade," the agency said.

In the first quarter of 2023, Hanoi witnessed socio-economic development amid an improved outlook for global economic growth in the short term, as many major economies have shown more resilience than expected.

Global economic growth is expected to reach 2.9% in 2023, 0.2 percentage points higher than the previous forecast, according to the International Monetary Fund (IMF)'s latest World Economic Outlook in January 2023.

However, the outlook for the global economy remains uncertain, with only modest growth predicted through 2023. A February World Bank report on the global outlook noted that consumer demand is declining, supply networks continue to deteriorate, and trade activity has slowed. In addition, production, imports and exports in several countries have been affected by the protracted conflict in Ukraine.

Despite undergoing impacts by the global economic situation, Hanoi made significant progress in 2022, thanks to the government's many synchronized and drastic measures to stabilize the cost of gasoline, electricity, and water, as well as to maintain exchange rates and reasonable interest rates, supply the market with goods, and promote economic growth and recovery. As a result, the macroeconomic environment is stable, inflation is under control, and social protection is maintained.

The Hanoi Statistics Office stated that since the year's beginning, the city has concentrated on fostering economic development, accelerating the recovery of the tourism and cultural sectors.

In the first quarter of 2023, the industry and construction sector is expected to expand by 2.41%, contributing 0.45 percentage points to the overall growth. Within the industry sector, manufacturing is expected to grow by 1.43%, energy production and distribution by 4.33%, and water supply and treatment by 7.05%. The construction sector is expected to grow by 3.69%, contributing 0.22 percentage points to the overall growth.

The service sector, which makes up a significant portion of the economy, has continued to experience robust growth, with an estimated growth rate of 7.40% in the first quarter of 2023, contributing 4.92 percentage points to the GRDP growth.

Several industries have stood out with high growth rates and significant contributions to the overall growth, such as administrative activities and support services (including tourism and travel) with an increase of 35.13%; arts, entertainment, and recreation (20.86%); finance, banking, and insurance (9.69%); wholesale and retail with an increase of (8.22%).