The UN Economic and Social Commission for Asia and the Pacific (ESCAP) has forecast the Vietnamese economy will grow at a rate of 5.8 percent in 2012 and the country’s inflation rate is likely to fall back to single digit by the second half of the year.

This was part of a report on the Economic and Social Survey of Asia and the Pacific 2012 launched by ESCAP in Hanoi on May 10.

The ESCAP report analysed measures taken by the Vietnamese Government to stabilise the macro-economy since 2011.

It said that in the first four months of 2012, Vietnam saw more stable macroeconomic indexes with its remarkably declining inflation rate, sharply falling lending, lowering interest rates, stable foreign exchange rate, and increasing foreign currency reserves.

The report showed that as confidence in the Government’s monitoring policies has recovered, Vietnam should address the issues of bad debts and liquidity in the banking system.

Regarding measures to curb price hikes on goods, the report said that Vietnam needs to diversify the economy, create useful employment opportunities and increase domestic consumption.

The best way is to increase agricultural productivity, focusing on expanding non-agricultural jobs and domestic markets for agricultural products, supporting rural development and boosting a green revolution based on modern technology and new varieties as well as providing credits to poor people, it said.

On the economic situation and prospects of Asia and the Pacific, Dr. Shuvojit Bannerjee, an economic expert of ESCAP in Bangkok , Thailand said Asia Pacific will continue to be a driving force for global growth.

Asia Pacific is forecast to remain a region that enjoys the most rapid growth in the world with an estimated 8.6 percent in China and 7.5 percent in India this year, he said.-VNA