HSBC: Vietnam's economy to recover in Quarter 4
A report on Vietnam’s macro economy and future prospects of the Vietnamese market announced by the Hong Kong-Shanghai Banking Corporation (HSBC) on October 2 shows that the Vietnamese economy will recover in the fourth quarter of this year.
“An anticipated recovery in Q4 could stoke inflationary pressure although inflation is still likely to stay in single digits by year-end 2012”, says the report.
According to the report, Vietnam has been successful at cooling an overheated economy to achieve macroeconomic stability. Growth remains below trend and will likely expand only at 5 percent in 2012.
However, the deceleration of the economy should be taken as an opportunity to correct structural weaknesses such as a still-cumbersome business environment, inefficient SOEs and public investment, it says.
The latest data release also shows that exports rebounded, trade balance year-to-date was positive, inflation remained in single digits and the economy accelerated slightly in the third quarter of 2012./.
