Central Institute for Economic Management suggests measures to boost growth in the second quarter.
The Central Institute for Economic Management (CIEM) has proposed the government issue more efficient macro-economic solutions, both fiscal and monetary, to boost economic growth in the second quarter of the year.
In its recently-released Q1 economic report, CIEM said that the slowdown in the first quarter’s GDP, which stood at 5.46 per cent and was lower than the 6.02 per cent recorded in the same period last year, is indicative of the country’s unstable economic recovery.
According to CIEM research, enterprises face higher costs for inputs and investors are less hopeful about macro-economic reform.
Monetary policy should be carefully adjusted to adapt to future inflation in order to make enterprises feel safe about long-term investment. It should also not be used to boost economic growth.
A stable exchange rate between the VND and the USD is a necessary component in maintaining growth in the second quarter, according to the report, and the government should allow for unfavorable fluctuations in the USD in the international market.
The reform of commercial banks should continue and operating costs reduced. CIEM proposed no limit on banks participating in government bond bids.
Regarding fiscal policy, it proposed cuts to operational spending and the building of detailed plans on repaying public debt in the medium and long terms to cement faith in the stability of public debt.