GDP up 7.8% in second quarter; services sector lags

Tuesday, 16 September 2014 00:18 -     - {{hitsCtrl.values.hits}}

The country’s Gross Domestic Product (GDP) expanded by 7.8% in the second quarter of 2014 compared to 7.6% in the same period last year, Department of Census and Statistics said in its Quarterly Estimates of Gross Domestic Product report released yesterday. The total economic output in Sri Lanka, measured by the GDP for the second quarter 2014 from April to June was Rs. 840.653 billion recording a positive growth rate of 7.8% compared to the second quarter of 2013 which was estimated as Rs. 779.974 billion, according to the Census and Statistics Department. The three main contributors to the economy recorded significant growth for the quarter. The Agriculture Sector contributed 10.6% to the GDP, Industries sector 31.5% and the Services sector 58% in the second quarter of 2014. The growth rate of Agriculture sub sector including Agriculture, Livestock and Forestry increased by 5.9% in the second quarter of 2014 compared to the 0.5 decrease reported in second quarter of 2013. Industry sector showed a growth of 12.2% in the second quarter of 2014 compared to the growth of 10.1% in the second quarter of 2013. The services sector which corresponds to higher share of 58% to the Gross Domestic Product and it has recorded a 5.7% increase in the second quarter 2014 while it grew by 6.6% in the respective quarter of 2013. In Agriculture Sector Tea industry showed a growth of 7.1% and coconut production increased 9.4% Year-on-Year in Q1 2014 while rubber production declined 3.7%. Rice production decreased by 5.7% YoY due to the prolonged drought in the dry zone and Minor Crops showed a significant growth of 47.2% in Q1 2014. Livestock sub sector showed only a slight increase over the period with 1.9% growth while fish production increased by 10.5%. Colombo Consumers’ Price Index which reflects the average price level of consumers’ goods is increased to 179.8 in the Q2 2014 from 173.5 in the Q2 of 2013, recording a 3.6% inflation rate in the quarter.