August 13, 2020 04:44

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Achieving high growth rates in the last quarters of the year is very difficult

13:42 | 10/07/2020

VCN - According to the Minister of Planning and Investment, in the last six months of 2020, it is necessary to focus on reviews in order to promote all geographical areas of growth in each major industry, field, locality and major projects.

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Breaking export markets, GDP in the second quarter was low

Report on the socio-economic situation in June and the first six months of 2020 at the Government's online conference with localities on July 2, the Minister of Planning and Investment said that in the first six months, our country successfully carried out dual tasks– successfully controlling the pandemic and restoring the economy to a reasonable level.

GDP growth rate in the first six months was 1.81%. In the context of global difficulties, many countries have not been able to have effective solutions to recover the economy and have negative growth, but this growth rate is the lowest in decades. Vietnam is one of the few countries with positive growth.

However, Mr. Nguyen Chi Dung said that the GDP of the second quarter only reached 0.36%, which is a concern. The main reason is due to the fact that we have broken the export market, the time for economic activities to contribute to the growth is not much, mainly focused in June due to the implementation of the social distancing policy by the end of April.

The agriculture, forestry and fishery sector still faced with many difficulties but had a positive increase compared to the first quarter, with an estimated increase of about 1.19%.

The industry and construction sector is estimated to increase by 2.98%, much lower than the same period last year. Inventory of the entire manufacturing industry is currently at a high level. The service sector was the most severely affected, estimated in the second quarter by 1.74% and for the whole six months it increased by only 0.57% over the same period in 2019.

Notably, the foundation for macroeconomic stability has been maintained. CPI tended to decrease gradually, the average in the first six months increased by 4.19%, the basic inflation in six months increased by 2.81% over the same period last year.

Disbursement of public investment in the first six months of the year was higher than the same period but still did not meet the set requirements, estimated at VND156 trillion, equaling 33.1% of the plan.

"Because this is an important solution to support economic growth, in the last months of the year, it is necessary to implement strong and resolute solutions to promote implementation and disbursement," the minister said.

At the same time, if there is no positive signal in the world pandemic, achieving a high growth rate in the last quarters of the year will be very difficult.

Be aware of seriousness and urgency

Affirming that the challenges in the last six months are still too much, Minister Nguyen Chi Dung said that it is necessary to have strong, accurate and timely measures and more drastic participation of the whole political system to ensure economic recovery.

“The situation in the last six months of the year is expected to be very challenging, the pressure on inflation control is very large, the output market for production and business, especially the processing, manufacturing, textile and footwear industries also face a lot of difficulties. In order to stimulate growth, recover quickly and promote economic development, we need to take quicker and stronger actions right now,”the minister said.

Regarding solutions for economic recovery after Covid-19, the Minister of Planning and Investment said it is necessary to be aware of the seriousness and urgency of the current socio-economic situation, as well as the task of economic restoration and development with the motto "fighting against economic recession as fighting against the enemy" in the spirit of "fighting against epidemic like fighting against the enemy" initiated by the Prime Minister in the prevention and control of Covid-19.

At the same time, studying and proposing the Government to submit to the Secretariat to set up a National Steering Committee against economic recession after the Covid-19 pandemic.

Focusing on reviewing to promote the growth potential in each industry, field, locality and each major project; continue to strongly implement monetary policies to support economic growth.

GDP growth rate hits six-month record low of 1.81%

The opening six months of the year saw the country’s gross domestic product (GDP) rise by 1.81%, ...

To promote attraction and disbursement of investment capital for the whole society, especially public investment is an important solution to promote economic growth in the last six months of 2020.

 


 

 

By Hoai Anh/Bui Diep