The WB recommended that the slowing economic growth in the first quarter needs close monitoring.
According to the report, anticipated increases in electricity tariff and public sector salary in the coming months and easing of monetary policy by the State Bank of Vietnam may lead to renewed upward pressure on inflation.
In the first quarter, the services sector grew by some 7% and contributed 2.9 percentage point to the GDP.
Retail sales continued to boast a strong performance with an increase of 2% in the first quarter and 13% in March. This was the 13th consecutive month in which retail sales recorded year-on-year double digit expansion.
Both exports and imports contracted by 11.8% and 14.6%, respectively, in the first quarter, the second consecutive quarter of contraction in merchandise trade.
In order to support the economy, the State Bank reduced the operating interest rate twice in March, leading to a reduction in deposit and lending rates of commercial banks./.
