Connect with us

Economy & Business

While Thailand Flounders the Economy in Vietnam Expands 7.3%

Advertisements

The economy expanded 6.98% in the nine months through September from a year earlier, data from the statistics office showed.

Published

on

This week it slashed the nations economic growth projection to 2.8% for the year as Thailand’s economy struggles. Household debt is climbing, the baht strengthens, exports are slowing. while Thailand’s central bank retains its benchmark rate at 1.5%.

Despite Bangkok introducing a $10bn stimulus package and visa waivers for Chinese tourists the economy remains sluggish. Thailand’s economy grew at its slowest rate in nearly five years in its second quarter.

The Thai baht has been one of Asia’s strongest performing currencies this year. Hurting the competitiveness of Thai exports and its key tourism sector, which generates more than a fifth of GDP.

Tourist arrivals to Thailand grew by less than 2 per cent in the first half of this year, and the number of visitors from China dropped nearly 5 per cent.

Vietnam’s Economy Grows 7.3% in Q3

However, in Vietnam it a completely different story, gross domestic product rose 7.31% from a year earlier. Up from a revised 6.73% in the second quarter.

Vietnam’s economic growth quickened in the third quarter, underpinned by solid growth in exports and manufacturing.

General Statistics Office in Vietnam said their economy expanded 6.98% in the nine months through September from a year earlier.  “Manufacturing is the main driver of economic growth in the first nine months of the year. Followed by services,” Nguyen Bich Lam, head of General Statistics Office, said at a Hanoi briefing on Saturday.

Vietnam could end the year with an inflation rate of less than 3%, lower than the government’s 4% target as food prices remain stable.

Do Thi Ngoc, head of the consumer prices department at the General Statistics Office said Vietnam’s nine-month agricultural output growth slowed to 2.02% from 3.7% a year earlier.

African swine fever has reduced the nation’s hog herd by 19%. Contributing to the decelerating of agriculture production growth, Do Thi Ngoc added.

Source: Bloomberg, Financial Times