GDP grew by an estimated 3.5% in 2021 after a steep 10.1% contraction in 2020. Fiscal and monetary stimulus and easing of pandemic-related supply-chain problems helped drive the recovery. All sectors likely grew in 2021. Industrial output increased by an estimated 4.7%, accounting for nearly half of GDP growth. Agriculture growth slowed to an estimated 3.6% from 4.6% in 2020 because of an unfavorable monsoon. Services growth moderated due to tourism restrictions, yet grew by 2.8% due to a revival in retail trade and other domestic businesses. Average inflation increased to 7.4% from 5.4%, reflecting stronger consumer demand and rising income. The economy is projected to grow by 4.5% in 2022 and 7.5% in 2023 as international tourism returns. 

Source: Asian Development Outlook 2022.
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 3.5 (Jun23)6.1
Merchandise Export Growth 1 -9.9 (Jul23)-9.9 -19.5
Exchange Rate Index 2 187.7 (Oct23)187.3 185.7
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: CEIC database.

Initiatives / FTAs