May 11, 2020 / 3:26 AM / 20 days ago

Vietnam's growth to slow to 2.7% this year but rise to 7% in 2021: IMF

FILE PHOTO: A worker arranges a steel structure at a construction site of a building in Hanoi, Vietnam August 15, 2019. REUTERS/Kham

HANOI (Reuters) - Vietnam’s economic growth is seen slowing down to 2.7% this year due to the coronavirus pandemic, but may pick up to 7% next year, the International Monetary Fund (IMF) said on Monday.

The Southeast Asian country’s strict measures to contain the virus, the global recession and weak domestic demand are expected to slow its economic growth this year from an average of about 7% in 2018 and 2019, the IMF representative in Vietnam, Francois Painchaud, said.

“Some sectors are expected to be severely impacted, especially the tourism, transportation, and accommodation industries,” he told Reuters in an emailed statement.

He said growth is expected to recover as containment measures are lifted, reaching 7% in 2021, supported by monetary and fiscal easing, Vietnam’s relatively strong macroeconomic fundamentals, and a gradual recovery in external demand.

Reporting by Khanh Vu; Editing by Muralikumar Anantharaman

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