GDP growth fell from 4.3% in fiscal year 2019 (FY2019, ending 30 June) to 0.9% in FY2020 due to stringent containment measures against COVID-19. Growth in the hard-hit services sector declined to 3.7% from 10.8% in FY2019, while international tourist arrivals fell by 35.0% and tourism revenue by 33.9%. On the demand side, fixed investment declined by 11.7% on weaker public and private investment. In response, government stimulus drove expenditures up from 28.9% to 32.0% of GDP. Monetary policy was also eased, leading to a 19.3% growth in broad money. The economy is expected to contract by 3.4% in FY2021 from the effects of prolonged lockdowns, migrant labor shortages, and reduced domestic demand. Given the successful widespread vaccination program and a return to economic activity, GDP is expected to rise by 3.7% in FY2022.
|Headline Inflation Rate 1||7.7 (Dec20)||2.3|
|Merchandise Export Growth 1||2.8 (Jan21)||2.8||-5.5|
|Exchange Rate Index 2||168.0 (Apr21)||164.2||171.9|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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