The economy reversed its 1.0% contraction in fiscal year 2020 (FY2020, ended 30 June), growing by 5.6% in FY2021. Industrial output grew by 7.8%, buoyed by fiscal incentives. Manufacturing was up by 10.5%, construction by 5.3%, and services rebounded by 5.7%, after pandemic-related restrictions were lifted. On the demand side, private consumption led the recovery, supported by government cash transfers and a record increase in remittances, along with an expansionary monetary policy. GDP growth, however, is projected to moderate to 4.0% in FY2022 due to slower domestic demand from monetary tightening, restrictions on automobile financing, and additional fiscal consolidation measures enacted in January 2022. Growth is expected to accelerate to 4.5% in FY2023 due to increased private consumption and investment. Greater macroeconomic stability is also expected to boost household and business confidence.
Latest | Month-Ago | Year-Ago | |
---|---|---|---|
Composite Stock Price Index 1 | 47.0 (Aug23) | 45.0 | 42.0 |
Broad Money Growth 2 | 13.1 (Jul23) | 13.1 | 14.2 |
Headline Inflation Rate 3 | 27.4 (Aug23) | 28.3 | 27.3 |
Industrial/ Manufacturing Production Growth Rate 3 | -1.2 (Oct21) | 1.6 | 21.9 |
Merchandise Export Growth 3 | -4.6 (Aug23) | -4.6 | -8.1 |
Exchange Rate Index 4 | 491.7 (Aug23) | 476.7 | 370.4 |
1 Monthly average, local index. 2 %. 3 y-o-y, %. 4 Monthly average, January 2006 = 100, $/local currency. | |||
Source: Bloomberg LP; CEIC database; Federal Bureau of Statistics. |
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