The economy contracted further, by 8.1% in FY2021 (ended 30 June 2021) as tourism, which accounted for 24.2% of GDP in FY2019, remained limited due to closed borders. Remittances rose by a record 6.7%, supporting household consumption and expanding foreign exchange reserves. Nontax revenues and grants from development partners helped fuel the budget. Though there a 3.0% deflation in FY2021, inflation is forecast to return in FY2022, reaching 8.9% as food and transportation prices rise significantly from high global oil prices and imported food costs. With no clear indication of when the economy will reopen its borders, GDP growth is forecast to grow by just 0.4% in FY2022, rising to 2.2% in FY2023.
|Headline Inflation Rate 1||1.3 (Sep23)||2.3||15.3|
|Merchandise Export Growth 1||-23.7 (Jul23)||-23.7||31.3|
|Exchange Rate Index 2||98.6 (Oct23)||98.7||97.2|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
Initiatives / FTAs
ADB Working Paper Series0 items
on Regional Economic
Studies and Research