Vietnam: Industrial production growth moderates in December
December 29, 2017
The industrial sector performed strongly in December but grew at a more moderated pace compared to the last three months, largely reflecting a broad-based slowdown but also partly due to a reduced base-effect. Industrial output expanded 11.2% year-on-year in the month, down from November’s over two-year high of a 17.2% jump.
Looking at a breakdown of performance in the sub-sectors, the manufacturing sector grew the most, although the pace of expansion moderated considerably from the previous month (December: +17.8% year-on-year; November: +24.3% yoy). The electricity and gas sector also lost some steam (December: +9.0% yoy; November: +13.0% yoy). Mining and quarrying output again contracted in December, dropping 10.0% year-on-year, following a 4.1% decline in the previous month. On the other hand, activity in the water supply, sewerage, waste management and remediation activities sector picked up from last month, rising 15.7% in annual terms, up from 10.0% in November.
In month-on-month terms, industrial production growth slowed to 2.0% in December from 2.8% in November. Meanwhile, average annual growth in industrial production rose to 10.0% in December, up from 9.7% in November.FocusEconomics Consensus Forecast participants estimate that industrial output will grow 7.4% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, panelists expect industrial production to expand 6.7%.
Author: Nihad Ahmed, Economist