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Monthly Economic Update - September 2020

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3 KEY INSIGHTS

  • Sri Lanka’s Growth to Contract by 5.5% in 2020: ADB

  • Sri Lanka Slips 12 notches in Global Innovation Index 2020: WIPO

  • Services Trade Barometer signals resilience in key sectors: WTO

 

Sri Lankan Economy

Sri Lanka’s Growth to Contract by 5.5% in 2020: ADB: The ADB forecasted a 5.5% GDP contraction for Sri Lanka in 2020 an upward revision from the 6.1% GDP contraction forecasted in June 2020. Growth is expected to recover to 4.1% in 2021. 

External Sector recovered further in July 2020: Increase in merchandise exports (9% YoY) and workers’ remittances (12% YoY) amidst decline in merchandise imports (25% YoY) supported the Sri Lanka’s external sector to recover further.

Sri Lanka Progresses in World Bank’s Human Capital Index 2020: The index finds that a child born in Sri Lanka today, will be 60% as productive when they grow up as compared to if they enjoyed complete education and full health. This is higher than the average for South Asia and lower-middle income countries.

Positive Direction for Investment in 2020: According to the BOI, agreements to the value of USD 1.5 Bn have been approved in the first nine months of 2020.

Sri Lanka Slips 12 Notches in the Global Innovation Index 2020: Sri Lanka slipped 12 notches to be ranked at 101st place in the recently released Global Innovation Index- 2020 from the 89th rank recorded in 2019.

 

Global Economy

WTO Services Trade Barometer signals resilience in key sectors: The latest reading from the WTO Services Barometer shows modest gains in some key sectors, suggesting a degree of resilience in the face of the pandemic.

Jump in Chinese Exports in August 2020: China’s export earnings rose by 9.5% in August 2020 compared to the same period of 2019, marking three months of growth.

Record Drop in UK Growth:  The UK was one of the worse performing European economies during the COVID-19 lockdowns as the country recorded a 20.4% contraction during April-June 2020 quarter, the biggest drop since records  began in 1955.

Global Oil Prices Fall in September: Oil prices are down in September on expectations for return on Libyan crude production and continued weakness in the expectation of global energy demand.

 

 

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Research Analyst - Economic Intelligence Unit, The Ceylon Chamber of Commerce

Saumya Amarasiriwardane

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