Vietnam’s GDP rises slowly in first quarter of 2016

The Hanoitimes – General Statistics Office (GSO) held a press conference in Hanoi on March 25 to announce the socio-economic development in the first quarter. Accordingly, gross domestic product (GDP) in January-March increased by 5.46%, slower than the 6.12% during the same period last year.

GSO Director General Nguyen Bich Lam said the country’s economy recorded signs of GDP stagnation.

Specially, the growth rate of the agro-forestry-fisheries sectors was equivalent to only 98.77% of that a year earlier and also lower than recent years’ corresponding figures.

Rice output in the Mekong Delta decreased by 6.2%, or about 700,000 tonnes, year on year while the winter crop yield in the north was also low.

According to the GSO, the value of the industrial and construction industries increased by only 6.72%, compared to 8.74% recorded in the first quarter of last year.

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Partly impacted by global economic difficulties, exports also grew slightly at 4.1%, he said, adding that the shipments of crude oil nosedived 52.8% during the period.

At the press conference, Director General Nguyen Bich Lam also stressed some economic highlights such as the 6.13% increase in the services sector’s value, the highest since the first quarter of 2012.

The consumer price index in March rose 0.57% monthly, 1.69% yearly and increased by 1.25% annually for the quarter.

Lam noted that Vietnam’s economy would meet major challenges due to drought, saltwater intrusion and unpredictable weather patterns through the rest of 2016.

Besides, crude oil prices, which are predicted to remain low, will have certain impacts on the domestic economy such as a decline in the State budget revenue from crude oil. In addition, low oil prices will also help cut down input expenses for almost all economic sectors and subsequently boost overall GDP, he added.

Thu Minh

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