HCM City to face headwinds from global slowdown next year

December, 09/2022 - 10:29
Amid the current elevated global uncertainty, HCM City could face headwinds from a global slowdown next year, said the chairwoman of the HCM City Council.
Nguyễn Thị Lê, chairwoman of the HCM City Council, speaks at a meeting of the municipal People’s Council on Wednesday. VNA/VNS Photo

HCM CITY — Amid the current elevated global uncertainty, HCM City could face headwinds from a global slowdown next year, said the chairwoman of the HCM City Council.

Speaking at a meeting of the municipal People’s Council on Wednesday, Nguyễn Thị Lệ said uncertainties related to the global economic slowdown and inflation pressures will affect the city’s economic growth next year, slowing its economic recovery.

Global growth is forecast to slow from 6 per cent last year to 3.2 per cent this year and 2.7 per cent next year, according to Lệ.

Lệ called on city authorities to focus on stabilising the macro-economy, controlling inflation, and streamlining administrative reform to ensure socio-economic recovery and development.

It would also need to speed up public spending which remained slow, causing major public projects to be delayed for years, she said.

As of the end of November, public spending was 34 per cent of the full-year target and is expected to increase to 77 per cent by the end of 2022.

The city would need to seek measures to supply the economy with capital amid tightening monetary policy.

It would also need to develop high-quality human resources and promote digital transformation to achieve digital governance, a digital economy and a smart city.

The city has set a target to attract 4.5-5 million foreign tourists next year for revenue of VNĐ120 trillion ($5.03 billion).

Despite huge challenges, the city’s gross regional domestic product (GRDP) is expected to reach 9.4 per cent in 2022, surpassing its target of 6-6.5 per cent.

Its total State budget revenue is estimated at VNĐ457.5 trillion this year (accounting for one-third of the country’s total State budget revenue), up 17 per cent year-on-year.

Its Index of Industrial Production so far this year is estimated to increase by 14.2 per cent.

So far this year, the city’s exports were worth $49.5 billion, up 10.3 per cent, and its imports $66.2 billion, up 10 per cent.

Total tourism revenue has reached VNĐ120 trillion, up 171 per cent year-on-year.

The city has received 3.5 million foreign visitors to date.

Its retail sales of goods and services were estimated at more than VNĐ900 trillion ($36.5 billion), up 30.6 per cent year-on-year. — VNS

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