(VOVWORLD) - Vietnam’s economy stays resilient to external shocks in the first few months of 2020 though Vietnam remains significantly exposed to the COVID-19 outbreak and the ongoing turbulence in the global financial markets, according to the World Bank (WB).
In its East Asia and Pacific Economic Update released Tuesday, the WB suggested that the rate of expansion of Vietnam’s economy could decline to about 4.9% in 2020.
In the first two months, its exports have expanded by 8%, FDI inflows amounted to 2.5 billion USD and retail sales were up by 5.4%, the bank said. It noted that while prospects remain favorable for the Vietnamese economy in the medium term, GDP growth will be affected negatively by the recent coronavirus outbreak, now a global pandemic.
The WB said Vietnam is strongly positioned to benefit from numerous free trade agreements that are coming into force. It said inflationary pressures are projected to increase temporarily due to an increase in food price and trade restrictive measures. It also said that the downturn in tourism, hospitality, production and manufacturing could lead to an increase in the poverty rate in the first half of this year.