IMF Managing Director Kristalina Georgieva called Vietnam a “bright star” and predicted that Vietnam’s growth would double the global economic growth rate.
This information was shared by Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), during her meeting with Prime Minister Pham Minh Chinh at the expanded G7 summit on May 20th in Hiroshima, Japan.
Georgieva believes that Vietnam is a shining star in the global economic landscape, with a promising growth rate amidst the significant fluctuations, risks, and impact of the Covid-19 pandemic on the global economy.
The IMF Managing Director further emphasized that Vietnam has effectively implemented monetary policies, which have helped sustain its growth momentum during challenging times. The organization forecasts that Vietnam’s economy will grow at twice the rate of the global economy.
In its forecast released in February, the IMF projected global economic growth of around 2.9% this year, a 0.5 percentage point decrease compared to the previous year.
Due to its high degree of economic openness, Vietnam’s economic growth this year is expected to be affected by the global economic recession, tightening monetary policies in developed countries, soaring commodity prices, and geopolitical fluctuations.
Vietnam has a dynamic economy and growth
Several financial institutions and entities have adjusted their GDP growth forecasts for Vietnam this year compared to their previous assessments. For instance, the World Bank projected a GDP growth of 6.3% (instead of 6.7%); the Asian Development Bank forecasted 6.5%; and Standard Chartered predicted 6.5%. With these projections, Vietnam’s growth this year surpasses the global growth rate by more than double.
In the first four months of this year, GDP increased by 3.32% despite facing various pressures from global economic fluctuations and domestic factors.
Amid ongoing economic challenges, Prime Minister Pham Minh Chinh requested continued policy advice from the IMF regarding economic management, enhancement of fiscal and monetary tools, and financial and banking restructuring for the Vietnamese government.
Georgieva affirmed that the IMF would provide guidance on interest rates, monetary policies, and strengthen Vietnam’s self-reliance capacity to cope with crises.
Last year, Vietnam’s GDP grew by 8.02%, the highest rate in the past ten years. The average per capita income reached $4,110, and the national brand value was $431 billion.