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GDP growth rate drops to decade record low in H1

VGP – The GDP growth rate was only 1.81% in the first six months of 2020, the lowest level over the past decade due to the COVID-19 pandemic and global uncertainties, the General Statistics Office (GSO) reported.

06/29/2020 01:28


GSO Deputy General Director Nguyen Thi Huong was quoted as saying that the COVID-19 pandemic has seriously caused impacts on all socio-economic aspects worldwide. Big economies such as the U.S., Japan, and the EU are struggling with the worst economic recession, global declining trade, disrupted supply chains, sharp decreases of crude oil prices, and high unemployment rates.

The complicated COVID-19 outbreak has negatively impacted the domestic market. The entire political system, the Government, and the PM gave a top priority to disease prevention and control; stood ready to compromise economic benefits to ensure lives and health for people. 

The Deputy General Director attributed great efforts of all levels, sectors, the business community, and people to the modest GDP growth rate, gradually bringing the economy back to normal. 

The GSO added that the agro-forestry-fishery sector expanded 1.19%, contributing 11.89% of the total GDP; industry and construction up 2.98% (accounting for 73.14%); service sector up 0.57% (14.97%). 

In the first half, major driving forces of the economy included the processing and manufacturing sector (up 4.96%); market services (whole sales and retail sales up 4.3%; finance, banking, and insurance sectors up 6.78%).

Regarding the structure of the economy during the first half of the year, the sector of agriculture, forestry and fishery made up 14.16%; the sector of industry and construction accounted for 33.44%; the service sector represented 42.04%; and product taxes less subsidies on production accounted for 10.36%.

In terms of GDP use during this period, the final consumption rose by 0.69% against the same period of last year; accumulated assets grew by 1.93%; trade balance of goods and services shrank by 2.23%./.

By Kim Loan