AEIR 2017

Economic growth slowed to 7.1% in fiscal year (FY) 2016, compared to 8.0% in FY2015. In November last year, the monetary authority demonetized and replaced high-denomination banknotes which slowed down economic activity in cash-dependent sectors. Other factors which contributed to the slowdown are sluggish private sector investment and weak bank lending. Consumption will continue to be the main driver of growth, but the manufacturing sector is indicating some growth with the purchasing managers’ index improving from 51.2 during the fourth quarter of FY2016 to 51.7 in first quarter FY2017.

A national goods and services tax will be implemented this year which is expected to improve the ease of doing business and facilitate growth. Growth is expected to reach 7.0% in 2017 and edge up to 7.4% in 2018

Source: Asian Development Outlook 2017 Update, ADB.
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 34.0 (Feb18)35.0 28.0
Broad Money Growth 2 10.3 (Feb18)10.3 10.8
Headline Inflation Rate 3 5.1 (Jan18)5.2 3.2
Industrial/ Manufacturing Production Growth Rate 3 7.1 (Dec17)8.8 2.4
Merchandise Export Growth 3 9.1 (Jan18)9.1 12.5
Exchange Rate Index 4 145.3 (Feb18)143.5 151.1
1 Monthly average, local index.
2 %.
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
Source: Bloomberg LP; CEIC database; Ministry of Statistics and Program Implementation; Ministry of Commerce and Industry.