HANOI (Reuters): The International Monetary Fund (IMF) said that Vietnam's economic growth is expected to be close to 6% this year, supported by strong external demand, resilient foreign investment and accommodative policies.
However, downside risks are high, the IMF said in a statement.
"Exports, a key driver for Vietnam's economy, could weaken if global growth disappoints, global geopolitical tensions persist, or trade disputes intensify," it said.
Domestically, persistent weakness in the real estate sector and corporate bond market could weigh more than expected on banks' ability to expand credit and hurt economic growth and undermine financial stability, it added.
Given easy monetary conditions, if exchange rate pressures were to persist for longer it could lead to a larger pass-through to domestic inflation, it said.
(Reporting by Khanh Vu; Editing by John Mair) - Reuters
