Continued monetary and fiscal stimulus along with the global economic recovery buoyed economic growth by 2.3% in fiscal year 2021 (FY2021, ended 15 July 2021). On the supply-side, agriculture expanded by 2.4%, industry by 1.7%, and services by 2.5%. The demand side was driven by private consumption and fixed investment, even as net exports weakened. In FY2021, average inflation slowed to 3.6% from 6.2% due to easing COVID-19 mobility restrictions. Increased revenues from customs and deferred receipts lowered the FY2021 budget deficit by 1.1 percentage points. Government debt rose to 41.4% of GDP due to increased spending to control the pandemic. The current account deficit widened to 8.0% of GDP in FY2021 from 0.9% on increased imports of transport equipment and manufacturing raw materials. With accommodative policies and increased vaccine coverage, the economy is expected to expand by 3.9% in FY2022.
|Headline Inflation Rate 1||7.4 (Jul23)||6.8||8.1|
|Industrial/ Manufacturing Production Growth Rate 1||10.7 (Jul22)||28.2|
|Merchandise Export Growth 1||-8.4 (Jul23)||-8.4||-4.4|
|Exchange Rate Index 2||187.1 (Aug23)||185.6||179.8|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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