(VOV) – Although the national economy is not quite out of the woods yet, we are not too worried about deflation, said Deputy Prime Minister Vu Van Ninh.
Ninh played down the public’s increasing worries about the deteriorating health of the national economy after the General Statistics Office announced that the consumer price index (CPI) tumbled in May for the third consecutive month.
On the sidelines of the National Assembly’s current session, he told the media that the low CPI is mainly the result of falling food and foodstuff prices.
“The industrial production index has already improved, and inventories are no longer as high as before,” Ninh said. “Credit growth has also slowed, but it is still higher than in the same period last year.”
He said the government is considering accelerating the VND30 trillion real estate bailout because the public has been complaining that the market is still stagnant. It is also planning to pool more resources to support the economy.
The National Assembly’s Economic Committee has proposed loosening the financial and monetary policy to ease difficulties and stimulate economic growth.
“Whether we loosen the policies or not should be carefully considered as specific inflation is low, but core inflation remains high,” said Ninh.
According to the Deputy PM, Vietnam should be cautious about the recovery of the global economy.
“Although the world economy is showing signs of recovery, it has yet to fully ride out the recession. If the recovery is on track, material and fuel prices will eventually go up.”
“The government will consider the NA Committee’s proposal to facilitate the national economy’s increased aggregate demand.”
Ninh further elaborated on ways to mobilise additional resources for the national economy that will not affect the National Assembly’s set public debt ceiling targets and budget deficit levels.
“The government manages its credit policy flexibly. It is fine if we meet this year’s 12% credit growth target and public debt is currently within safe limits.”
The Deputy PM, who is also the former Finance Minister, said the government plans to mobilise more resources to help the country weather the storm and it will propose that the legislature ease the debt ceiling slightly.
Đăng ký: VietNam News