ADB cuts 2013 South Asian growth outlook

10 December 2012 02:55 am - 0 - {{hitsCtrl.values.hits}}

A A A

The GDP growth of South Asian countries comprising of Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka for 2013 have been reduced from 6.4% to 6.2% while the growth outlook for 2012 has been cut to 5.3% from the previous estimated 5.5%. In 2011, the region grew by 6.2%.

According to the quarterly economic update by the Asian Development Bank (ADB) for July-September, this is due to the uncertain global environment and tight monetary policies adopted to combat domestic inflation that continues to pressure South Asian economies.

“The late and uneven monsoon will hurt agricultural production in India and Nepal. In Bangladesh, the growth projection for 2013 has been revised downward due to decelerating export growth. Domestic demand remains anemic as the central bank continues tightening monetary policy. In the Maldives, recent political turmoil, growing concern over increasing fiscal deficit, rising public debt, and the effect of the weaker European economy on tourism continued economic fragility.”, the report said.

India, the largest economy in the South Asian region remain sluggish due to the contraction in the industrial production which saw a YoY fall of 0.4% for the period. Further, the low growth of private consumption expenditure, weak agricultural income and fragile investment sentiments in the coming quarters have dragged the GDP growth projections to 5.4% from the previous 5.6% for 2012.

“Growth in 2013 has also been revised down from 6.7% to 6.5% as high deficit and inflation coupled with weak capital flows will make it difficult for the government to cut rates to boost the economy,” the report added.

However ADB continues to stick to the previous inflation projection of 7.4% for 2013 while the projection for 2012 has been revised downwards to 8.3% from 8.6% due to the continued downward trend in the international food price index in October.

“The decline is largely due to reduced international prices of oils/fats, specifically soybean and palm oil. Abundant supply of fats and vegetable oil, coupled with weak external demand, contributed to market cooling. Grain prices remained elevated, above last year’s level, as tight supply continued to support prices,” the report noted adding that food prices in 2013 were forecasted to grow 2% on the assumption of higher meat prices, lower grains production and higher demand as the global economy slightly improves.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

ADB cuts 2013 South Asian growth outlook

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

Sri Lanka’s Rupee leads emerging markets in 1st quarter of 2024

Suspicious death of 23-year-old woman at hotel sparks concerns

Sri Lanka defaults on USD 6 billion payment despite rising reserves: Patali

23 year old youth ends up having his testicles removed

Confusion remains if April 15 is a bank holiday

April 15 declared a government holiday

MIRROR CRICKET

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

Amir, Wasim return to Pakistan national team

TODAY'S HEADLINES

Ruwan calls on Kotte Sri Kalyani Mahanayake Thera

Effectiveness of Sri Lanka’s legal system is questioned over alleged corruption: Chief Delegate

Public inconvenienced due to lack of transport

Ex-soldiers joining Russian military as mercenaries, Sri Lanka seeks details

Mendis, Mathews move up in ICC Test Rankings

Security raised for Champions League ties after threat

SLA target four events at Paris Olympic Games

Chamodi, Dewmi spins Sri Lanka U19 Women to big win