The global economy appears to betransitioning toward a period of more stable albeit moderatepace of growth. Global Gross Domestic Product (GDP), whichslowed in mid-2012, is recovering and a modest accelerationin quarterly GDP is expected during the course of 2013. Inthe developing world growth remains solid, but there aresome signs of easing. More than four years after thefinancial crisis started, global industrial output is only5.3 percent higher than its pre-crisis peak. While theglobal financial market conditions continue to improve,eventual phasing out of quantitative easing in advancedeconomies is beginning to worry investors. The improvementin financial conditions can be seen in lower yields onlong-term debt, higher stock market returns and near-recordflow of gross capital to developing countries.Vietnam's economy is experiencing its longest spell ofslow growth since the onset of economic reforms in thelate-1980s. Real GDP grew by 5 percent in 2012, the lowestlevel since 1998. The economy extended its slow growth intothe first half of 2013, registering a growth rate of 4.9percent in the first quarter and 5 percent in the secondquarter. This is the first time that Vietnam has experiencedtwo consecutive years of sub-5 percent growth in the firsthalf of the year since it started publishing quarterly GDP.In fact what had distinguished Vietnam from other countriesis its ability to recover rapidly after an economic shock-beit during the East Asian crisis in 1999 or the globalfinancial crisis in 2009. However, Vietnam has found itharder to take timely and decisive actions to jumpstart itseconomy from the current growth slowdown. Vietnam is theonly large developing country in the East Asia and Pacificregion other than China whose post-crisis growth rate hasbeen lower than its pre-crisis level.
PDF
download
878987797
028-85220240
