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.
|Headline Inflation Rate 1||3.9 (Mar23)||5.6|
|Merchandise Export Growth 1||-32.4 (May23)||-32.4||8.5|
|Exchange Rate Index 2||186.7 (Aug23)||185.2||179.4|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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