Vietnam’s exports fell for a fifth consecutive month in July in their longest slump in 14 years, putting the trade-reliant economy at risk of missing its growth target.
(Bloomberg) — Vietnam’s exports fell for a fifth consecutive month in July in their longest slump in 14 years, putting the trade-reliant economy at risk of missing its growth target.
Exports dropped 3.5% this month, while imports declined 9.9%, data released by the General Statistics Office on Saturday showed. Economists surveyed by Bloomberg predicted a 6% drop in overseas shipments, and 13.1% slide in imports.
Headline inflation was little changed in July from a year ago at 2.06%, according to the statistics office. That compared with a median estimate for a 1.9% year-on-year increase in prices.
The core measure, which strips out food, fuel, health care and education services, climbed 4.1% in July from a year ago after gaining 4.3% in June.
Steady inflation will give the central bank scope to further reduce borrowing costs to support businesses as the government seeks ways to bolster the economy after a warning that Vietnam may miss its 6.5% growth target this year.
Prime Minister Pham Minh Chinh on July 27 asked the central bank to come up with measures by the end of this month to improve access to bank loans while reiterating calls for lower lending rates to spur business activities.
The State Bank of Vietnam has cut interest rates four times this year and signaled it will slow monetary easing amid concerns of bad debt, the pressure on the banking system and the impact on the currency.
–With assistance from Clarissa Batino.
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