Viet Nam lowers 2008 growth target amid record inflation, widening trade gap

Wednesday, April 23, 2008
The Vietnamese government lowered its economic growth target to 7.0% this year as the country fends off a record inflation rate and a widening trade deficit, official reports said Wednesday.

The government initially targeted growth of 8.5% to 9.0% for 2008.

But after lower year-on-year GDP growth for the first three months of the year, record inflation and a wider trade deficit, the government began talking down economic prospects for the year.

Last month Vietnamese Deputy Prime Minister Nguyen Sinh Hung said the country should strive for annual growth of 7.5%.

Investment and Planning Minister Vo Hong Phuc gave a new growth projection on Tuesday at a meeting at the National Assembly.

Viet Nam reported 7.4% GDP growth in the first quarter, against 7.8% for the same period in 2007.

For the first three months of the year, the consumer price index rose more than 16% from the same quarter last year and Viet Nam reported a trade gap of $7.4 billion. (Thomson Financial)