GDP increased by 4.14% in the second quarter.

Economic growth in the second quarter is estimated at 4.14%, only slightly higher than the same period in 2020 - the lowest point in a 13-year period due to the emergence of Covid-19.

This morning, the General Statistics Office held a press conference on the economic situation in the first half of the year. According to the report, GDP in the second quarter is estimated to have increased by 4.14% compared to the same period last year. Considering the period from 2011-2023, this result is only 0.34% higher than the growth rate in the second quarter of 2020, a period when the Covid-19 pandemic was developing complicatedly. Overall, GDP increased by 3.72% in the first six months of the year.

The current driving force for the economy lies in the service sector. Thanks to policies stimulating domestic consumption and intensified tourism promotion activities, growth in this sector has been sustained. The value added of the service sector in the first six months of 2023 increased by 6.33% compared to the same period last year, higher than the 1.18% and 4.53% increases in the same periods of 2020 and 2021, respectively.

Meanwhile, the industrial and construction sector faces numerous challenges amidst the overall global economic climate. The added value of this sector in the past six months increased by only 0.44% compared to the same period last year – the lowest growth rate for the same period when considering the entire 2011-2023 timeframe.

In the first six months of 2023, Vietnam estimated a trade surplus of $12.25 billion with a total trade turnover of $316.65 billion, but both exports and imports decreased sharply by 12-15% compared to the same period last year.

Mr. Nguyen Viet Phong, Director of the Department of Trade and Services Statistics, stated that the decline in Vietnam's import and export turnover is part of a general trend as global demand decreases. Data shows that by April 2023, 13 out of 16 countries with large global trade volumes had reduced exports, and 12 out of 16 countries had reduced imports.

"Vietnam has experienced consecutive declines in exports and imports for two quarters, with the second quarter being stronger than the first," he said. The decrease in imports of goods such as machinery, equipment, and raw materials also indicates that domestic production demand is showing signs of negativity.

Nevertheless, he assessed that the total import and export turnover of over 316 billion USD in the first six months still showed some positive signs, equivalent to the scale of 2021.

"In the context of a general economic downturn, Vietnam's trade balance remains positive with a surplus of $12.25 billion, contributing to economic growth," he said. Looking ahead, according to the General Statistics Office, imports and exports may face many adverse impacts as global demand has not yet recovered and geopolitical conflicts remain unpredictable.

In the first half of the year, 113,600 new businesses were established and re-entered the market, averaging 19,000 units per month. Meanwhile, approximately 100,000 businesses withdrew, averaging 16,600 units, a decrease compared to the averages of the first five and four months of the year.

The results of the business trend survey for the manufacturing sector in the second quarter also showed that the number of optimistic businesses increased compared to the first quarter. The number of businesses that assess business trends as better in the third quarter is also expected to increase.

The Consumer Price Index (CPI) in June increased by 0.27% compared to the previous month and by 2% year-on-year due to rising food prices, increased electricity costs for households caused by prolonged hot weather, and adjustments to the average retail electricity price. On average for the first six months of the year, the CPI increased by 3.29% year-on-year. Core inflation, however, rose by 4.74%, higher than the overall average CPI.

Duc Minh - Tat Dat

Source link: https://vnexpress.net/gdp-quy-ii-tang-4-14-4623125.html