Sri Lankan Economy
- According to the latest export figures, Sri Lanka’s exports rose by 5.7% year-on-year in September 2016. Exports in the Q3 of the year were 3% higher than the same period last year.
- Agricultural Exports of Q1 grew by 7% year-on-year while Industrial Exports grew by 4%.
- Tea, rubber products and food beverages saw gains, while textile and Garments saw declines in September 2016 compared to the same period of 2015.
- Imports of Q1 were lower than the same period previous year, with declines in consumer goods and intermediate goods. Investment goods, meanwhile, increased by 12%.
- Food and beverages, machinery and transport equipment imports rose while fuel, and building materials declined in September 2016 compared to same period of 2015
- Credit to the private sector recorded a decline, which is at 22% in October 2016, show a declining trend since August 2016
- Sri Lanka’s nation-wide inflation is steady at 4.2% and inflation in capital Colombo rises to 4.1% in December 2016.
- Tourist arrivals to Sri Lanka hit a record high in 2016 exceeding 2 million arrivals while tourist arrivals rose by 14% in 2016 year-on-year.
- January 2017 update of the Global Economic Prospects Report of the World Bank stated that the forecasted growth of Sri Lanka for 2017 is 5% and this growth momentum will continue with 5.1% growth in 2018 and 2019.
- The IMF forecasted global growth at 3.1%, 3.4% and 3.6% for 2016, 2017 and 2018 respectively in their January 2017 update which are in line with the October 2016 forecast.
- China, the world’s largest trading nation posted the lowest GDP growth after 26 years in 2016, which is 6.7%.
- According to the OPEC’s oil market report of January 2017, global oil demand is anticipated to rise by a solid 1.16million barrels per day in 2017 year-on-year.
- The presidency of Donald Trump began on January 20th as the 45th President of US and he has already signed executive orders to pull America out of the Trans-Pacific Partnership mega-regional trade pact.
- The World Gold Council has identified six major trends those are affecting to the gold demand in 2017. They are heightened political and geopolitical risks, currency depreciation, rising inflation expectations, inflated stock market valuations, long term Asian growth and opening of new markets.