Asia Regional Integration Center
Tracking Asian Integration
The economic recovery after the devastating earthquake in 2015 is well underway with growth rebounding to 6.9% in fiscal year (FY) 2017, brought by normalized trade flows, favorable monsoon and expansive fiscal policy. The growth in paddy production of 21% eased inflationary pressures. Fiscal policy was largely expansionary, funding recurrent and capital expenditures.
The economy is likely to grow by 5.9% in FY 2018 due to rapid expansion of government expenditure, which in turn catalyzed a marked pickup in industry, mostly in manufacturing and construction. Primary risk to outlook is the possible substantial fall in remittances as reflected by the expansion of trade deficit.
Source: Asian Development Outlook 2018, and Asian Development Outlook 2018 Update, ADB.
| Latest | Month-Ago | Year-Ago | |
|---|---|---|---|
| Headline Inflation Rate 1 | 4.6 (Jul18) | 4.1 | 2.7 |
| Industrial/ Manufacturing Production Growth Rate 1 | 9.2 (Jan18) | 35.7 | 0.0 |
| Merchandise Export Growth 1 | 1.8 (Sep18) | 1.8 | -3.9 |
| 1 y-o-y, %. | |||
| Source: CEIC database. | |||
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