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MONTHLY ECONOMIC UPDATE - OCTOBER 2019

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3 KEY INSIGHTS

  • Sri Lanka’s Economic Growth to Soften to 2.7% in 2019: WB

  • Sri Lanka Ranked 99th in the 2020 Doing Business Index; up by one position from the 2019 ranking 

  • IMF downgraded global Growth for 2019 to 3% while WTO downgraded global trade growth to 1.2% for 2019, due to rising trade barriers, growing geopolitical tensions 

 

Sri Lankan Economy

GDP Growth Expectation of 2.7% in 2019: The World Bank expects the economy to grow 2.7% in 2019, supported by recovering investment and exports. It is projected to reach 3.1% and 3.7% in 2020 and 2021 respectively.

Sri Lanka Ranked 99th in the DB Index 2020: Sri Lanka ranked as 99th out of 190 countries with a score of 61.8 in the Doing Business 2020 report released recently by the World Bank. The country gained one spot from the 2019 ranking.

Parliament passes Vote on Account: A vote on account was passed enabling the government to spend and raise debt for the first four months of 2020 to have a full year budget in place.

A vote on account was passed enabling the government to spend and raise debt for the first four months of 2020 to have a full year budget in place.: The rising stars of global trade report of the Standard Chartered Global Research, featured Sri Lanka as one of the rising stars of global trade, ranking at 14th place in the list which identified top 20 performers that have the greatest trade growth potential.

Trade Deficit down by over USD2Bn: During the first eight months of 2019, the deficit in the trade account contracted by USD 2.38Bn. This contraction was mainly contributed by a decline in personal vehicle imports and an increase in textiles and garments.

 

Global Economy

South Asia’s Growth Forecast Revised Downwards: The World Bank downgraded South Asia’s growth for 2019 to 5.9% from 7% expected in April this year.  The current global downward trend, casting uncertainty about a rebound in the short term influenced this revision.

Global Growth in a “Synchronized Slowdown”- IMF: The IMF has downgraded its forecasts for global growth for 2019 to 3% from 3.2% expected in July. The forecasted growth for 2020 is 3.4%. The report says that the global growth was in a “synchronized slowdown” due to rising trade barriers and growing geopolitical tensions.

WTO Lowers Global Trade Forecast Sharply: WTO sharply downgraded their forecast for global trade growth to 1.2% for 2019 from 2.6% expected previously due to escalating trade tensions and a slowing global economy.

 

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The Ceylon Chamber of Commerce

Economic Intelligence Unit

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