World Bank revises down SL’s 2020 growth forecasts to 3.3%

The World Bank has slightly revised downward the economic growth for Sri Lanka in 2020 to 3.3%.

The latest estimate is contained in the World Bank’s January 2020 Global Economic Prospects report. The fresh forecast versus June 2019 reflects a 0.3 percentage point difference. For 2021 and 2022, the Bank has retained the same forecast of 3.7%.

Most leading countries in South Asia have been subjected to similar downgrades. It said growth in the region is expected to rise to 5.5% in 2020, assuming a modest rebound in domestic demand and as economic activity benefits from policy accommodation in India and Sri Lanka and improved business confidence and support from infrastructure investments in Afghanistan, Bangladesh, and Pakistan.

World Bank said global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist.