Country in need of fiscal consolidation, IMF says in Washington D.C.
Mr. Chanyong Rhee, Director of the Asia and Pacific Department at the International Monetary Fund, said that Vietnam should pay attention to its level of public debt at a press conference on the Asia and Pacific region on the sidelines of IMF/WB Spring Meetings on April 17 in Washington D.C. “Public debt is still high in Vietnam and Sri Lanka and requites attention,” he said.
Vietnam’s debt-to-GDP ratio was projected at 60.3 per cent of GDP in 2014, up from 54.2 per cent in 2013, Prime Minister Nguyen Tan Dung told a government meeting late last year. It will rise to 64.9 per cent in 2016 but will then fall to 60.2 per cent in 2020.
Mr. Rhee added that most frontier and developing economies in Asia and Pacific are expected to grow above 6 per cent in the near future but risks remain. “We are focused on Vietnam having growth in the next two years of 6.0 per cent and 5.8 per cent, which are very similar to last year’s figure,” he said.
He also summarized the IMF’s recommendations that, in some countries, including Vietnam, “gradual fiscal consolidation would strengthen resilience.”
Strategy on Public Debt and National Foreign Debt in the Period of 2011–2020 and Vision to 2030, approved by Prime Minister Nguyen Tan Dung in Decision No. 958/QD-TTg on July 27, 2012.