Gibbs
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SL to be the fastest growing country in South Asia
Sri Lanka is expected to post the strongest economic growth in South Asia in 2014, hitting 7.2%, according to a World Bank’s latest report on Thursday.
According to the report, Sri Lanka’s annual growth is forecast to remain broadly stable at 7.2% in 2014, and to moderate to about 6.9% in 2015 and 6.7% in 2016, higher than estimates of medium-term potential growth for the country.
The estimates are behind the Central Bank’s projection of a 7.8% growth in 2014 and an 8% growth for 2015 and beyond.
Sri Lanka’s annual growth pace picked up to 7.3% in 2013 from 6.3% in 2012, boosted by services, stronger manufacturing activity, robust agricultural growth and a pickup in domestic demand partly due to the easing of monetary policy.
As demand from the Euro area and the United States improved in 2-H of 2013, exports from Sri Lanka grew rapidly, the World Bank noted.
Despite acceleration in growth, Sri Lanka’s inflation fell from 6.7% in October 2013 to 3.2% in May this year, the report noted. Sri Lanka’s deficit has also fallen in recent years due to tight monetary policies.
With the exception of Nepal and the Maldives, all countries in South Asia are faced with significant revenue shortfalls, the report said.
According to the World Bank, GDP growth in South Asia in 2014 will be at 5.3%, and it will rise to 5.9% in 2015 and 6.3% in 2016.
The report said most of the acceleration was localised in India, supported by a gradual pickup of domestic investment and rising global demand.
India will grow at 5.3% in 2014 and the World Bank projected India’s GDP to grow at 6.3% in 2015 and 2016 and 6.6% for 2016-17.
While credit growth is slowing in South Asia, domestic financial risks remain as non-performing loans (NPLs) remain an ongoing concern, the World Bank report said. Sri Lanka has the second lowest NPLs as a share of total loans in South Asia.
According to the global lender, South Asian countries are vulnerable to political developments in Ukraine and Russia that could result in tighter international Crude Oil supplies, given the reliance of South Asia on imported Crude Oil. (Live Trading News)
Sri Lanka is expected to post the strongest economic growth in South Asia in 2014, hitting 7.2%, according to a World Bank’s latest report on Thursday.
According to the report, Sri Lanka’s annual growth is forecast to remain broadly stable at 7.2% in 2014, and to moderate to about 6.9% in 2015 and 6.7% in 2016, higher than estimates of medium-term potential growth for the country.
The estimates are behind the Central Bank’s projection of a 7.8% growth in 2014 and an 8% growth for 2015 and beyond.
Sri Lanka’s annual growth pace picked up to 7.3% in 2013 from 6.3% in 2012, boosted by services, stronger manufacturing activity, robust agricultural growth and a pickup in domestic demand partly due to the easing of monetary policy.
As demand from the Euro area and the United States improved in 2-H of 2013, exports from Sri Lanka grew rapidly, the World Bank noted.
Despite acceleration in growth, Sri Lanka’s inflation fell from 6.7% in October 2013 to 3.2% in May this year, the report noted. Sri Lanka’s deficit has also fallen in recent years due to tight monetary policies.
With the exception of Nepal and the Maldives, all countries in South Asia are faced with significant revenue shortfalls, the report said.
According to the World Bank, GDP growth in South Asia in 2014 will be at 5.3%, and it will rise to 5.9% in 2015 and 6.3% in 2016.
The report said most of the acceleration was localised in India, supported by a gradual pickup of domestic investment and rising global demand.
India will grow at 5.3% in 2014 and the World Bank projected India’s GDP to grow at 6.3% in 2015 and 2016 and 6.6% for 2016-17.
While credit growth is slowing in South Asia, domestic financial risks remain as non-performing loans (NPLs) remain an ongoing concern, the World Bank report said. Sri Lanka has the second lowest NPLs as a share of total loans in South Asia.
According to the global lender, South Asian countries are vulnerable to political developments in Ukraine and Russia that could result in tighter international Crude Oil supplies, given the reliance of South Asia on imported Crude Oil. (Live Trading News)