GDP forecast to have grown by seven-year high of 5% in 2024

Thursday, 9 January 2025 03:15 - - {{hitsCtrl.values.hits}}

The Central Bank of Sri Lanka (CBSL) yesterday revealed that the economy in 2024 is forecast to have grown by a seven-year high of 5%.

“Real GDP is projected to have grown by around 5% in 2024, registering the highest annual growth since 2017,” CBSL Governor Dr. Nandalal Weerasinghe said during the presentation of the CBSL’s Policy Agenda for 2025 and Beyond. In 2017, the GDP grew by 6.5%.

He said that continuing the recovery observed in the second half of 2023, the Sri Lankan economy rebounded strongly in 2024, initially benefitting from the base effect, but also supported by accommodative monetary policy and a low-inflation environment.

During the first three quarters of 2024, the economy is estimated to have grown notably by 5.2%, with key economic sectors recording expansions. Building on the momentum in economic activity, leading economic indicators of industry and service sectors reflect a continuation of the expansion in output in the last quarter of 2024 as well.

Pointing to 5% annual growth in 2024, Dr. Weerasinghe said the higher-than-expected growth also provides evidence that deflation in recent months was not due to demand factors but mainly due to supply-side factors, including administrative price adjustments.