Stimulus policies are expected to play a crucial role in boosting aggregate demand and driving a stronger economic recovery in the second half of 2023. Aggregate demand weakens The global economy has been grappling with uncertainties since the start of 2023, primarily due to persistently high inflation, according to Associate Professor Dr. Nguyen Thanh Hieu, vice president of the National Economics University. This has prompted numerous central banks to adopt tight monetary policies, resulting in a deceleration of growth in major economies. Geopolitical factors, including the ongoing Russia-Ukraine military conflict, further compound the challenging international landscape. As the global market fluctuates, Vietnam’s economy has been negatively impacted, leading to a deceleration of economic growth in the first half of the year. In terms of investment, the actual capital expenditure from the state budget reached approximately VND232.2 trillion in the first half of 2023, representing 33% of the annual plan. However, investment from non-state sectors only experienced a modest increase of 2% compared to the same period last year. Fresh foreign direct investment (FDI) pledges in Vietnam amounted to US$13.43 billion from January to June, a 4.3% year-on-year decrease. The total FDI disbursement also slightly dropped by 0.5% compared to the […]