National Assembly deputies have suggested the Government work out solutions to stepping up credit growth to help obtain this year’s gross domestic product (GDP) growth target of 6.7%.
An improvement of aggregate demand in the economy is a measure for attaining higher GDP growth, they said, adding total outstanding loans should be around 2% higher than the earlier prediction, deputy Le Thu Ha from Lao Cai Province said at a discussion at the NA last Friday.
The Government has estimated loan growth at 18-20% this year, so a 2% hike in money supply would not put inflationary pressure on the economy because core inflation has so far this year expanded a mild 1.66% compared to 2016.
Even if the consumer price index (CPI) goes up over 4% against 2016 but is still below 5%, it would stimulate healthy economic expansion, she explained.
The deputy suggested encouraging the public to spend and the private sector to invest through consumer credit expansion, and boosting administrative reform.
The Government will need breakthrough measures to allow GDP to grow at least 7% in each of the last three quarters of 2017 if it is to realize the 6.7% growth rate for the full year and build a solid foundation for stronger growth next year.
According to a report the Government presented to the lawmaking body, the nation’s credit growth rate reached 5.75% in the first four months of this year, the strongest same-period rise in six years.
This year’s credit growth is expected at around 18%, with most credit going to priority sectors such as agriculture, rural development, export, supporting industries, small and medium-sized enterprises and hi-tech application.
A high GDP growth rate will help the Government guarantee macro-economic balances such as budget, public debt, investment, export-import, employment and living standards; facilitate sustainable development in the coming years; and obtain the annual GDP growth goal of 6.5-7% in the 2016-2020 period, the Government said.