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. 

Source: Asian Development Outlook 2022.
Latest Month-Ago Year-Ago
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.

Initiatives / FTAs