The Relationship Between Economic Growth, Inflation and Unemployment: Policy Implications for Vietnam

Abstract:

This study focuses on the relationship between economic growth, inflation, and unemployment in Vietnam during the period from 2004 to 2023, aiming to provide insights into the factors influencing the sustainable economic development of the country. The significance of this research lies in clarifying the interconnections among these three variables, an area that has not been fully explored in the existing literature, particularly in the context of Vietnam facing numerous global economic challenges. The subjects of the study include macroeconomic indicators such as GDP, inflation rates, and unemployment rates. The research method uses descriptive statistical analysis and visual data presentation to examine trends and fluctuations of economic indicators over time, using data sourced from the World Bank. The results reveal a complex relationship between economic growth, inflation, and unemployment. Specifically, when economic growth declined due to the Covid-19 pandemic in 2020, the unemployment rate increased while inflation remained under control. The study also indicates that inflation can negatively impact economic growth when it surpasses a certain threshold. These findings hold significant implications for policy, emphasizing the necessity to maintain effective inflation control measures and promote sustainable growth to ensure job stability and long-term economic development.