4
BoJ, has strongly and effortlessly implemented loose
monetary policies aiming at inflation of 2% in 2019.
Japanhas been facing serious shortageof labor supply
resulting from the decline of working population
while there is an increasing rise in labor demand.
China economy has continuously grown
strongly for many unceasing quarters. However,
the risks in debt is becoming bigger and bigger
because of a non-stop rise in credits over a long
time in China. Two rating agencies S&P and
Moody’s have accordingly lowered China’s credit
risk management ratings for many times.
There were different trends of economic
growth in BRICS. Russia and Brazil had a
significant recovery while India economic growth
continuously went down to a bottom. Meanwhile,
ASEAN economies keep growing prosperously,
resulting from strong growth in both international
and domestic spending as well as investment.
According to IMF forecast, ASEAN-5 economic
growth will remain stable at a rate of 5% in both
2017 and 2018.
The world’s commodity market showed the
price recovery of energy commodities and the
stability of the world’s food price in the last months
of 2017. The world’s securities market has sped
up and continuously broken a series of records.
Also, the price of bitcoins has gone up over the
last year, which creates a concern about a possible
financial ‘balloon’. Meanwhile, USD suffered a
bad year in which its price decreased by 7% (the
biggest reduction in the last decade). There was an
opposite trend in gold price, however, the change
VIETNAMECONOMY:
HIGHLIGHTS OF 2017ANDOUTLOOK FOR2018
NGUYEN DUC THANH, PhD., VU MINH LONG, MA.
- Vietnam Institute for Economic and Policy Research, University of Economics and Business (Vietnam National University, Hanoi)*
2017 witnessed the continuous stability in Vietnammacroeconomy in the trendy global economy.
Especially, GPD of 6.81%mainly resulted from exports and domestic spending. Inflation of 4%was under
control by active regulation policies and tight pricing regulation. Although Vietnam had considerable
achievements in 2017, Vietnam economy that need to resolve its internal issues will face with challenges
in maitaining the economic growth as well as the macroeconomic stability in 2018.
Keywords: Macroeconomics, inflation, export, enterprises, state budget
Received: December 22
nd
, 2017
Revised: January 4
th
, 2018
Accepted for publication: January 5
th
, 2018
TheWorld’s economic growth is stable
Despite the forecast of instable political factors
in 2016, most of economies in the world in 2017 had
more stable economic growth. In US, in particular,
its economic growth had a continuous increase of
more than 3% in quarter II and III. This growth
rate was the highest rate over the last three years
in spite of the forecasts of the super storms Harvey
and Irma impacts on US economy. US economic
growth mainly resulted from an increase in
domestic spending, enterprise investment, Federal
government spending and exports. The economy’s
positive signals encouraged FED to continuously
raise interest rate aswell as upgradedUS forecasted
economic growth in 2018.
EU economies witnessed strong recovery of
economic growth, which has been positive for 4
continuous years since the global financial crisis in
2008. The recovery resulted in European Central
Bank’s cut in buying governmental bonds of
Eurozone governments. In contrast, UK economic
growth continuously went down and its position
of the 5th most developed economy was overtaken
by France. This was due to the inflation increase
and worries about the impacts of Brexit process as
well as the failure of Prime Minister Theresa May
in the advance polling.
In Asia, Japan maintained the stable growth of
positive rises in 7 continuous quarters, which has
been the longest over the last decade. Bank of Japan,
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