Economy performs well in first two months, higher inflation warned

PM Nguyen Xuan Phuc (standing) chairs Cabinet meeting on Thursday. Photo: VGP

The Government chief made the statement at the Cabinet meeting on Thursday.

PM Phuc stressed that the macro-economy was stable and inflation was put under control while exports continued upward trend, reaching US$13.4 billion in January, sending the total figure to US$33.6 billion in the first two months, up nearly 23%.

Especially, exports of domestic sector rose 25.7% compared to 21.8% of the foreign-invested sector. Trade surplus hit over US$1 billion while Viet Nam posted a trade deficit of US$50 million in the first two months last year.

Though the traditional new year holiday fell in February, industrial production grew 8% in February and 15.2% in the two months, in which processing and manufacturing and mineral exploitation increased by 17.7% and 5.7%, respectively.

Foreign arrivals to Viet Nam soared 29.7% to 2.86 million and disbursed volume of foreign investment reached US$1.7 billion, up 9.7%.

Nearly 19,000 were freshly established, including 7,864 in February, according to PM Phuc.

PM Phuc added the Government 17,000 tons of rice from the national reserves to poor people in a bid to help them have a warm Tet.

The Government chief however underlined the need to continue focusing on inflation control and giving priority to macro-economic stabilization.

He warned that inflation rate could be higher than 2017 as prices of crude oil and goods on the global market tend to rise and Viet Nam has attracted large volume of foreign capital and remittances.

As many countries have made adjustments to their economic policies, including corporate tax reduction, PM Phuc urged inferior levels to put forward necessary measures./.

By Huong Giang