Vietnam 2023 economic growth slows to 5.05%, missing government target
By Khanh Vu
HANOI (Reuters) -Vietnam's economic growth slowed to 5.05% this year from an expansion of 8.02% last year, official data showed on Friday, weighed by weak global demand while public investment stalled amid an intensified anti-graft crackdown.
This year's gross domestic product (GDP) growth was below a government target of 6.5% and lower than average growth of 5.87% during the previous decade, according to the data released by the government's General Statistics Office (GSO).
Vietnam is a regional manufacturing hub, which relies heavily on trade, but exports in 2023 fell 4.4% from last year to $355.5 billion, with shipments of smartphones, its largest foreign currency earner, dropping 8.3%, the GSO said in its report.
Industrial production index in 2023 rose 1.5% from last year, while average consumer prices in the year rose 3.25%, according to the GSO. Retail sales were up 9.6%.
«Though this year's growth is below a government target of 6.5%, it is still a positive result, putting Vietnam in the group of the fastest growing economies in the region and in the world,» the GSO said.
Imports in 2023 fell 8.9% to $327.5 billion, resulting in a trade surplus of $28 billion for the year, according to the report. A large trade surplus is supportive for the dong currency, but a sharp fall in imports could indicate a slowdown in manufacturing activities in the months ahead.
The country's central bank, in an effort to boost economic growth, has this year cut its policy rates four times, reducing its refinance rate and discount rate by an accumulated 150 basis points each, but credit growth remains much weaker than its target of 14%.
Overall credit growth in the economy as of end-November was 8.2%, according to data
Read more on investing.com
