Illustrative image (Source: VNA)
Hanoi (VNA) – Vietnam’s economy has proven resilient amidst slower global growth, according to the World Bank’s newly released East Asia and Pacific Economic Update.

Economic activity in Vietnam moderated somewhat in the first three quarters of 2016 due to the impact of a severe drought on agricultural production and slower industrial growth, the report said.

But macroeconomic stability has been maintained and inflationary pressures remain subdued, it added.

While Vietnam continues to reduce poverty, the decline in agriculture poses short-term risks. The livelihoods of households that rely on agriculture for income are particularly vulnerable.

For the medium-term, the outlook remains positive; however, it is necessary to push ahead with fiscal and banking reforms to sustain higher growth.

The report expects growth in developing countries in the region to reach 5.8 percent in 2016 and 5.7 percent in 2017-2018.-VNA