Wednesday, 11 September 2013 01:46
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Only four out of nine provinces achieve improved GDP growth rate in 2012 over 2011
Wayamba fares worst; Eastern Province overall best performer
North Provincial GDP up 26% but lower than in 2011 though contribution to national GDP up
Southern Province picks up but struggles relative to massive investment push
Considerable variations in sectoral contributions across provinces
Per capita incomes of all provinces improves in 2012
Economic growth in the provinces in nominal terms was a mixed bag last year, with only four out of the nine managing to improve over the previous year.
The better four were the Southern, Eastern, Central and North Central Provinces and the rest recorded a lower rate of growth or remained static.
The Eastern Province was the best performer last year with its GDP growth up 25% and share of national figure improving to 6.3% from 13.5% and 5.8% respectively in 2011.
With elections around the corner, voters in Wayamba will have much to complain as it performed worst. The province’s GDP grew by only 11.4%, half of what was enjoyed in 2011 at 22.5% growth. Its share of national GDP dipped below the 10% mark to languish at 9.6%.
The Central Bank linked the performance of the North Western Province to poor performance in the Agriculture, Mining and Quarrying and Electricity sectors.
The Northern Province, which will also see the people exercising their vote on 21 September, had seen its GDP up by 26% (second highest) but below 27.8% in 2011 though its national share inched up to 4% from 3.7% in 2011. The main reason for the high growth was the improved performance in Industry and Services sectors.
The Southern Province saw its GDP grow by 21.3% (third highest), and overall share of 11.5% in comparison to 20% and 11% respectively. Given the massive investment push in infrastructure in the south, analysts viewed the 2012 figures as a relative underperformance.
The Central Bank said the growth rates of the Northern, Eastern and Southern Provinces were higher than the country’s nominal growth rate of 15.9% in 2012.
GDPs of Central and North Central Provinces grew though their overall share remained static; Uva saw its GDP dip and bit marginally at Sabaragamuwa as well.
The dominant Western Province’s GDP grew by 13.7%, down from 15.2% in 2011, and its share dipped to 43.4% from 44.2%.
The country’s GDP in real terms grew by 6.4% in comparison to 8% in 2011 whilst at current prices (nominal terms) improved by 15.9%, down from 16.8% in 2011.
Per capita incomes of all provinces increased in 2012. The per capita income of the Western Province at Rs. 564,132 was 1.5 times the national per capita income in 2012.
