The World and the Vietnamese Economy in 2018: Prospects for 2019 and Some Policy Implications for Vietnam

Abstract

 The world economy in 2018 was less “bright” than the initial projections of international organizations. The US-China trade war, the crisis in some emerging economies, and the faulty policies and unpredictable fluctuations in terms of political geography affected many economies across the world, resulting in a reduction in world investment and the growth rates of many countries. In the first quarter of 2019, trade protectionism showed no sign of reduction, political geography conflicts were on-going, and disagreements between powerful countries were not resolved. Consequently, the global economy has been negatively affected. The global economic growth rate has been “flat” and has gradually reduced. The two biggest economies of the US and China suffered from a reduction in economic growth at the end of 2018 and at the beginning of 2019. This paper analyzes the macroeconomic situation of the world and Vietnam in 2018, provides some projections for 2019, and then proposes some policy recommendations for Vietnam.