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Tuesday, June 18, 2024

HCMC’s economic growth expected to slow down in Q2

The Saigon Times

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HCMC – HCMC’s gross regional domestic product (GRDP) growth in the second quarter of 2024 is forecasted to be lower than in the first quarter, according to the Statistics Office of HCMC.

Nguyen Khac Hoang, director of the Statistics Office, stated at a meeting on May 31 on the city’s socio-economic performance so far this year that the city’s April-June GRDP might expand by just over 6%, which is lower than the 6.54% achieved in the first quarter.

The lower-than-expected growth rate is attributed to falling consumer spending, a sluggish increase in imports and exports, and delays in public investment capital disbursements.

For instance, while newly established local businesses and fresh foreign direct investment approvals have increased, their registered capital has decreased, indicating caution in investment and business expansion.

Public investment disbursements have also slowed down significantly. According to the State Treasury of HCMC, in April and May, there was not a single week in which public capital disbursement reached VND200 billion.

To boost economic growth in HCMC, Hoang suggested that domestic consumption should be boosted as this is a primary driving force. He emphasized the need for stimulus programs for shopping, restructuring measures, and support for traditional wet markets to overcome difficulties.

It is also necessary to accelerate budget allocations and public capital disbursements to ensure timely implementation of budget plans.

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