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GDP growth estimated at over 7%, inflation below 3%: Deputy PM
The Saigon Times Daily
Wednesday,  Dec 25, 2019,18:22 (GMT+7)

GDP growth estimated at over 7%, inflation below 3%: Deputy PM

The Saigon Times Daily

Deputy Prime Minister Vuong Dinh Hue (standing) speaks at a meeting of the Steering Committee for Price Management held today, December 25 - PHOTO: VGP

HCMC - Vietnam's 2019 gross domestic product (GDP) is projected to expand by more than 7% from one year earlier, while inflation is seen below 3%, said Deputy Prime Minister Vuong Dinh Hue.

At a meeting of the Government's Steering Committee for Price Management today, December 25, Deputy PM Hue said this year would be the second consecutive year the country’s GDP has grown by over 7%, the local media reported.

The steering committee’s earlier inflation forecast ranges from 3.3% to 3.9%. If the Ministry of Health factors the salaries of medical staff and management costs into the prices of health examination and treatment services, the consumer price index (CPI) would increase 3.3%-3.9%.

According to a report delivered at the meeting by the Ministry of Finance, the country’s CPI this year may stand at at 2.73%, the lowest in three years. The 2017 and 2018 figures were 3.53% and 3.54%.

In the second half of this year, pork prices have surged, triggered by the spread of African swine fever.

However, the prices of food, fuels, gas, sugar and telecom services have declined, thanks to the Government’s solutions to ensure the supply-demand balance and control market prices.

Deputy PM Hue said next year’s price control policy will be based upon global market conditions to ensure flexible foreign exchange and monetary policies.

Meanwhile, the Ministry of Finance's Department of Price Management, the State Bank of Vietnam and the General Statistics Office have issued their price regulation scenarios for 2020, with inflation being kept below 4%.

Nguyen Anh Tuan, head of the Department of Price Management, said inflation would rise to over 4% in the first quarter of next year due to an increase in the prices of fuels, pork and other goods during the Tet holiday.

He proposed keeping public service fees unchanged during the quarter.

After listening to representatives of ministries and agencies, Deputy PM Hue said the Steering Committee for Price Management would choose to keep inflation in the range of 3.59% to 3.91% next year.

Although the prices of products, especially pork, may increase inflation in the first quarter of next year to more than 4%, the steering committee anticipates that the country’s inflation in 2020 can be kept below 4%, as ordered by the National Assembly, noted Hue.

He also asked the Ministry of Agriculture and Rural Development to ensure the sufficient supply of pork for local consumers during the Tet holiday, as directed by the prime minister. 

In addition, ministries and agencies must not adjust public services fees in the first and last quarters of next year, and must ensure sufficient supplies of goods.

The deputy prime minister also requested the Ministry of Industry and Trade to control fuel prices, in line with global prices, and flexibly use the fuel price stabilization fund. Meanwhile, the Ministry of Natural Resources and Environment was assigned to coordinate with the relevant ministries, agencies and localities to assess the impacts of the new land price frame.

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