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GDP Growth Signals Economic Recovery
Sri Lanka's GDP surged to Rs. 3,329,583 million in Q1 2024 from Rs. 3,161,963 million in Q1 2023, marking a year-on-year growth of 5.3%. This increase reflects a robust recovery across various sectors, emphasizing the economy's resilience and adaptive response to previous economic challenges.
Industrial Sector Leads with Double-Digit Growth
The industrial sector showcased a significant rebound, expanding by 11.8% in the first quarter of 2024. This growth was primarily driven by notable performances in construction, which increased by 14.2%, and mining and quarrying, which rose by 18.3%. Manufacturing also saw a comprehensive upturn of 10.6%, further bolstering the industrial expansion.
Agricultural and Services Sectors Show Varied Performance
Agriculture experienced a modest growth of 1.1%, with notable increases in specific areas like cereal growth (22.4%) and freshwater fishing (18.1%). Conversely, the services sector grew by 2.6%, with significant contributions from accommodation and food services, which soared by 40.4%, and insurance activities, which climbed by 17.8%.
Economic Indicators Reflect Favorable Market Conditions
The positive shift in GDP is also mirrored in other economic indicators. Current price GDP rose by 8.4% to Rs. 7,959,032 million, with taxes less subsidies on products growing by 10.0%. The detailed sectoral growth underscores a broader economic enhancement, driven by lowered inflation and favorable policy adjustments facilitating market activities.
IMF forecast Sri Lanka to grow 2.0% in 2024 and 2.7% in 2025.
Last Updated August 2024
In 2019, India's real GDP growth rate was 3.9%, reflecting modest economic stability with slower expansion. The growth was mainly driven by the services sector, though manufacturing and agriculture faced challenges.
In 2020, India's economy saw a severe downturn, with a GDP contraction of -5.8% due to the COVID-19 pandemic. Lockdowns and reduced demand led to one of the worst recessions in the country's history, exposing economic vulnerabilities.
The economy rebounded strongly in 2021, achieving a 9.1% growth rate. This recovery was driven by a revival in consumer demand, government spending, and industrial production, aided by vaccine rollouts and easing lockdowns.
According to the IMF, India's GDP growth is projected to grow 7.3% in 2024 and 6.5% in 2025.
Last Updated April 2024
In 2020, the US real GDP contracted by 2.8%, a significant decline driven by the COVID-19 pandemic. The widespread lockdowns and economic disruptions led to a severe downturn, impacting various sectors and leading to a historic economic contraction.
The year 2021 saw a robust recovery for the US economy, with the real GDP growth rate rebounding to 6.0%. This growth was fueled by strong consumer demand, government stimulus measures, and the rollout of COVID-19 vaccines, which helped restore economic activity.
From 2022 onwards, the US GDP growth rate is expected to stabilize around 2.1%, with minor fluctuations. The economy is projected to grow at 2.1% in 2022 and 2023, followed by a slight dip to 1.5% in 2024, and then a gradual recovery to 1.8% in 2025.
By 2026, the growth rate is anticipated to return to a steady 2.1%, continuing through 2027 and 2028. These projections suggest a return to more consistent, moderate growth as the economy stabilizes post-pandemic, supported by steady consumer spending and business investments.
Last Updated April 2024