AEIR 2019/2020

GDP growth slowed from 6.8% in FY2017 to 6.2% year-on-year during the transitional fiscal year (TFY) 2018—from 1 April 2018 to 30 September 2018—due to weaker domestic demand and slower investments. Domestic investment was sluggish, due to slower disbursement of government expenditure, weaker investor sentiment, and a decline in FDI approvals. The current account deficit fell by more than half, from the equivalent of 4.7% of GDP in FY2017 to 2.0% in TFY2018. Growth is forecast to rise to 6.6% in FY2019 (the full year ending 30 September 2019) and 6.8% in FY2020. A weakening external environment may hurt export prospects, but domestic and foreign investment should improve in response to the opening up of FDI in retail and wholesale trade, and insurance.

Source: Asian Development Outlook 2019, ADB.
Latest Month-Ago Year-Ago
Broad Money Growth 1 12.3 (Aug19)12.3 12.7
Headline Inflation Rate 2 9.5 (Dec19)8.3 6.9
Merchandise Export Growth 2 35.3 (Nov19)35.3 22.9
Exchange Rate Index 3 22.0 (Feb20)22.0 23.0
1 %.
2 y-o-y, %.
3 Monthly average, January 2006 = 100, $/local currency.
Source: CEIC database.

Initiatives / FTAs