VIETNAM’S gross domestic product (GDP) contracted 6.17 percent in the third quarter of 2021 from a year earlier as pandemic restrictions hit, the sharpest quarterly decline on record, government data released yesterday showed. The services sector contracted 9.28 percent from a year earlier in the period, while the industrial and construction sector fell 5.02 percent, the General Statistics Office (GSO) said in a statement. The agriculture sector expanded 1.04 percent. “The COVID-19 pandemic has seriously affected all aspects of the economy with many key production cities and provinces having to impose strict lockdowns,” the GSO said in a statement. The GSO traditionally releases data before the end of the reporting period and its data are often subject to revision. Growth in the second quarter was revised down to 6.57 percent from 6.61 percent. After successfully containing the virus for most of last year, Vietnam has been grappling with a rise in infections since April, with total cases at 770,000 and 18,936 deaths, mostly in its business hub Ho Chi Minh City and neighboring industrial provinces. The outbreak has forced authorities to impose strict lockdowns in Vietnam’s largest cities and provinces, and prompted firms to suspend production. The government has in the past week taken steps to gradually ease lockdowns, following pressure from business associations and warnings by investors that the restrictions will prompt a shift away from the country. The government is targeting a 6.5 percent GDP increase this year, but a minister said growth could be 3.5-4 percent. Analysts said monthly activity data indicated the worst may be over. “We still expect a sizeable pick-up in the fourth quarter with production quickly normalizing due to higher vaccination rates among manufacturing employees and a broader easing in restrictions,” Oxford Economics said in a note. (SD-Agencies) | 