Sunday, June 08, 2008

IMF urges Vietnam to fix its overheating economy.

IMF urges Vietnam to fix its overheating economy.

[This is the print version of story http://www.abc.net.au/ra/news/stories/200806/s2268078.htm]

Updated June 7, 2008 13:36:35


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The International Monetary Fund says Vietnam should tighten monetary and fiscal policy to fix its "overheating" economy.

Driven by high global energy and food prices inflation hit 25 percent year-on-year in May and the trade deficit, fuelled by a surge of imports, widened to 14.4 billion dollars in the first five months.

IMF country chief Benedict Bingham says Hanoi needs to raise interest rates, cut the budget deficit and push market reforms if its to fight double digit inflation and reduce trade deficit.

Mr Bingham made the comment at a a twice-yearly meeting between the government and foreign donors.