The International Monetary Fund (IMF) is projecting that Vietnam’s economic growth will slow to 2.7% in 2020 due to Covid-19 before rebounding to 7% next year, according to a report by the Reuters news agency.
The IMF representative in Vietnam Francois Painchaud was quoted by Reuters as saying that Vietnam’s strict measures to contain the coronavirus, the global recession and weak domestic demand are expected to slow its economic growth this year from an average of about 7% in 2018 and 2019.
He stated that some severely hurt sectors include tourism, transportation and accommodation.
But the IMF chief in Vietnam noted that growth is expected to recover as containment measures are lifted, reaching 7% in 2021, supported by monetary and fiscal easing, Vietnam’s relatively strong macroeconomic fundamentals and a gradual recovery in external demand.
Earlier this month, the Economist magazine listed Vietnam as the 12th strongest economy in its report on the financial strength of 66 emerging economies in the wake of the Covid-19 fallout.