Vietnam may face increased pressure on inflation control: Experts
Economists on September 16 forecast Vietnam may find it harder to tame inflation in Q4 and 2023.
Economists on September 16 forecast Vietnam may find it harder to tame inflation in Q4 and 2023.
The inflationary pressure, however, is huge for 2022 amid the deepening energy crisis and the hoarding of strategic goods by some countries.
The current Covid-19 outbreak has inevitably caused a sharp drop in consumer spending and a potential rise in living costs, but exports remained a driving force for growth with consistent performance.
A cautious approach in managing inflation could help ensure the consumer price index (CPI) staying below 3%.
A 0% deposit rate amid a high inflation rate would turn people away from banks and look for other investment channels such as real estate, securities, or gold with higher risks, stated an expert.
During and after the pandemic, the digital economy should be at the center of economic policies for Vietnam in the post-pandemic period.
Input cost inflation is the main concern for the second half of 2021.
In case the US can fully disburse the entire US$1.9-trillion stimulus package, Vietnam’s GDP could expand by an addition of 0.76 percentage points.
Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.
While there are several upside risks, moderating food prices should keep Vietnam’s inflation under control.