AEIR 2017

Growth accelerated to 7.1% in 2017 from 6.9% in 2016, reflecting higher exports and remittances as conditions improved abroad and ambitious public investment continued. On the demand side, higher public spending helped expand investment by 4.1%, while private consumption rose by 2.4%. Net exports improved by 8.6% as higher output and external demand boosted exports while import substitution further reduced imports. On the supply side, industry growth accelerated to 21.3% with gains in mining, manufacturing, and electricity generation. Agriculture rose by 6.8% as favorable weather and additional cultivated area boosted cotton production.

Growth is forecast to moderate to 6.0% in 2018 as fiscal tightening to address the high ratio of public debt to GDP constrains public investment and a weak banking sector limits credit growth, curbing private investment. Growth is expected to recover to 6.5% in 2019 on gains in manufacturing and mining, higher remittances, and the expanded replacement of imports with local alternatives.

Source: Asian Development Outlook 2018, ADB.
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 1.6 (Jun18)1.8 9.1
Industrial/ Manufacturing Production Growth Rate 1 11.8 (May18)13.4 20.7
Merchandise Export Growth 1 14.3 (Dec17)14.3 42.6
Exchange Rate Index 2 291.2 (Jul18)283.7 275.0
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: CEIC database.