[6 April 2015] — The country's gross domestic product (GDP) this year is expected to be 6.5 per cent, much higher than the Government's set target of 6.2 per cent, the National Financial Supervisory Committee (NFSC) forecast.

According to the committee, the GDP in the first quarter of the year posted a 6.03 per cent year-on-year increase, the highest in the last five years.

 

The committee said the increasing GDP was due to improved demand. The total retail sale of products and services in the first quarter (excluding price rise) was 5.1 per cent higher than the same period last year.

The investment demand also improved. As of March 20, the country's credit growth reached 1.25 per cent, much higher than the level of 0.5 per cent in the corresponding period last year, thanks to interest rate cut to some extent.

FDI disbursement in the first three months was 7 per cent, higher than 5.6 per cent in the past 12 months.

The country's exports in the first quarter of this year grew 6.9 per cent against the same period last year to touch US$35.7 billion.

As for inflation, the committee said CPI this year would continue to be a low 3.5 per cent. If the world food prices fall this year, the CPI target of 5 per cent would depend on electricity tariff adjustment.

It calculated that the power tariff rise of 7.5 per cent on March 16 would increase the whole year's CPI by 0.5 per cent. — VNS