Asia Regional Integration Center

Economic growth accelerated to 7.0% in FY2018, thanks to sustained growth in tourism. Retail trade, hotels and restaurants, and transport and communications also contributed, mostly due to tourism spillovers. Construction grew by 25% as projects for renewable energy, water supply and sanitation were implemented. However, fishing, finance, and health care saw a decline in output. Economic expansion should decelerate to 6.0% in FY2019 and 4.5% in FY2020 as limited tourist accommodation constrains growth, despite new infrastructure projects and improved internet connectivity.