SL to grow highest in South Asia despite IMF cut in forecast

Thursday, 11 October 2012 00:36 - - {{hitsCtrl.values.hits}}

The IMF has forecast the Sri Lankan economy to grow by 6.7% this year, down from 8.3% last year.

The latest forecast was made public in the World Economic Outlook October update released ahead of IMF World Bank annual meetings in Tokyo. The IMF forecast is more or less in line with separate forecasts released recently by the Asian Development Bank and the World Bank. The IMF also revised down its forecast for growth this year to 3.3% and 3.6% in 2013 saying that recovery has suffered new setbacks and uncertainty weighs heavily on the outlook.

In developing Asia, real GDP is forecast to accelerate to a 7.25% pace in the second half of 2012.

Relative to the IMF’s April forecast, the growth estimate for 2013 has been revised from 1.8% down to 1.5% for advanced countries and from 5.8% down to 5.6% for emerging and developing countries.

Within South Asia 2012 growth for Sri Lanka, India, Bangladesh, and Maldives will be lower than the previous year. Pakistan and Nepal are forecast to improve GDP growth this year over 2011.