GDP growth slowed to 3.3% in fiscal year 2020 (FY2020, ending 30 September) from 6.8% in FY2019 because of the COVID-19 pandemic. Industry grew by an estimated 5.1% in FY2020 (from 8.6% in FY2019) while services decelerated to 2.5% (from 8.3%). Higher demand and favorable weather helped agriculture grow by an estimated 1.8% in FY2020 (1.6% in FY2019). Inflation eased to 5.7% in FY2020 (8.6% in FY2019). Sharply rising imports widened the current account deficit to 4.0% in FY2020 (0.4% in FY2019). To mitigate the pandemic impact, the central bank lowered its policy rate from 10.0% to 7.0%, while the government provided tax relief and raised public spending on health and infrastructure. The fiscal deficit reached 4.9% of GDP in FY2020. In FY2021, the economy is forecast to contract by 9.8% due to government disruptions, mass political protests, and new waves of COVID-19 infections.
|Broad Money Growth 1||18.2 (Dec20)||18.2||17.0|
|Headline Inflation Rate 2||2.6 (Mar21)||1.5||6.6|
|Merchandise Export Growth 2||-5.2 (Feb21)||-5.2||-4.1|
|Exchange Rate Index 3||24.0 (May21)||23.0||21.0|
2 y-o-y, %.
3 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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