A view of HCM City at night. HCM City is likely to face hurdles caused by a global recession this year and uncertainty. — VNA/VNS Photo

HCM CITY — HCM City is likely to face hurdles caused by a global recession this year and escalating uncertainty, Deputy Chairman of its People’s Committee Dương Anh Đức has warned.

Speaking at a meeting on Wednesday, he said the global economic slowdown and inflation would impact the city’s socio-economic development, slowing its recovery.

Global growth is expected to decrease from 3.2 per cent last year to 2.7 per cent this year, he said.

The real estate, stock and bond markets are all expected to face huge challenges this year amid tightening monetary policy, according to Đức.

Many local businesses lack orders because of the weak global demand, and the situation would not improve until the middle of the year, he said.

Solutions

The city would organise meetings to discuss measures to support businesses and workers, and seek ways to supply the economy with capital amid the tight monetary policy, Đức said.

For instance, it would implement a programme to link up banks and enterprises to provide the latter with loans.

It would also speed up public spending, which has been tardy, to speed up work on major projects this year, he said.

It would also organise activities to match labour supply and demand, he added.

The city’s exports were worth US$3.6 billion in January, down 13 per cent year-on-year.

In January, its Index of Industrial Production decreased by 15 per cent year-on-year and 21 per cent from the previous month.

Retail sales of goods and services grew by 5.7 per cent year-on-year.

Tourism revenues increased by 16.8 per cent year-on-year.

The city received 350,000 visitors, up 100 per cent year-on-year, but mostly domestic travellers, in January, and has a target for this year of attracting 4.5-5 million foreign tourists and revenues of VNĐ120 trillion (US$5.03 billion).

The city attracted 50 FDI projects worth a total of $86.86 million, up 127.8 per cent.

Its revenue collection were down 13 per cent. — VNS