Sri Lankan Economy
Exports: Passed the US$ 1 billion mark in March 2017 for the first time since March 2015, and registered a growth of 10 per cent which was mainly led by agricultural exports followed by industrial exports. During March 2017 agricultural exports grew by 28 per cent while industrial exports increased by 5 per cent Y-o-Y.
Imports: Increased by 19 per cent Y-o-Y in March 2017 and this was the highest import growth since October 2014. Intermediate goods contributed highest for the overall growth of imports followed by consumer goods and investment goods. During March 2017, intermediate goods imports grew by 33 per cent while consumer goods and investment goods increased by 12 per cent and 5 per cent.
Trade Balance: The deficit in the trade balance widened substantially by 34 per cent to US$ 828 million in March 2017 compared to march 2016.
Inflation: In May, CCPI decreased to 6 per cent (from 6.9 per cent) while CCPI core decreased to 5.2 per Cent (from 6.8 per cent) on Y-o-Y basis. The latest data available for NCPI is April and in April, NCPI decreased to 8.4 percent (from 8.6 percent) Y-o-Y basis while NCPI Core decreased to 5.9 per cent (from 7 per cent) on Y-o-Y basis.
Economic Growth: The World Bank forecasts 4.7 per cent of economic growth in 2017 and 5.1 per cent in 2019 according to the June update of the World Bank’s Global Economic Prospects Report.
Global Growth: World Bank forecasts that the global economic growth will strengthen to 2.7 per cent in 2017 as pick up in manufacturing and trade, rising market confidence and stabilising commodity process allow growth to resume in the commodity-exporting emerging market and developing economies, in the June Update of the Global Economic Prospects Report.
Global Oil Prices: Oil prices fell in the first part of June on the back of inventory and production data and the prices in the short term are likely to remain weak.
China: Registered an unexpected growth in both imports and exports in May 2017 and reason for the export growth is improving global demand while higher imports of iron and ore and other commodities used for construction resulted in increase of imports.
USA: Economy has been growing for 96 straight months and the unemployment rate, at 4.3 per cent, is at its lowest level since 2001 and job growth has remained strong.