Despite challenges GDP growth rate records 2.1
percent:
Economic performance in Q 2 encouraging
Charumini de Silva
The economic performance in the second quarter of 2009 is encouraging
since the second quarter showed a better performance compared to the
first quarter. Despite many challenges the estimated Gross Domestic
Production (GDP) growth rate recorded 2.1 percent in the second quarter.
The three main sectors of GDP agriculture, industry and services have
shown a positive trend. The industry sector showed a 3 percent growth
while the services sector grew by 1.1 percent. The agricultural sector
showed a growth of 4.4 percent accounting for 12.2 percent of the GDP
share in the second quarter, said Director General, Census and
Statistics Department, D. B. P. S. Vidyarathne.
Sub sectors such as paddy, vegetables, highland crops and livestock
recorded a growth of 6 - 12 percent and this was mainly due to the
positive impact on the Nagenahira Navodaya program in the Eastern
province.
At
a glance |
* Three main
sectors of GDP show a positive trend
* Positive impact on Nagenahira
Navodaya program
* Trade deficit contracts to US$
6041m in 2Q, 2009 |
After fishing restrictions were relaxed in the Northern and the
Eastern sea belt and with the increased number of tourist arrivals there
will be a better economic contribution in the second half of 2009. The
liberation of the Northern and the Eastern provinces will be a key
factor to accelerate economic growth, she said. The external trade
sector showed a decrease due to the global downturn. The export demand
for agricultural and industrial goods has shown a decline, but the
balance of payment (BOP) in the second quarter has shown an improvement
compared to the first quarter. However, the monetary policies of the
country protected the system.
“The improvement in the stock market has reached a record position
among the world stock markets and we could expect an enhanced direction
while tourists arrivals are picking up in the third quarter.
With the global recovery at present, the country could expect an
improved performance in the second half of 2009 and 2010”, she said.
Infrastructure development projects especially in the Northern and
the Eastern provinces and other parts of the country are also
remarkable. The investment rate was 23 percent in the first half of 2009
and it is estimated to be around 24 percent in the second quarter, she
said.
Private remittances recorded US$ 813 million in the second quarter of
2009 and it is in excess of the trade deficit.
The trade deficit contracted to US$ 604 million in the second quarter
of 2009 compared to US$ 1,715 million in the corresponding quarter of
2008. This was mainly due to the reduction of imports, which outweighed
the reduction of exports, she said.
She said gross official reserves recorded US$ 1,737 million while
total reserves reached US$ 3,151 million. These reserves are sufficient
to finance 1.8 and 3.3 months of imports.
Director, Census and Statistics Department, G.Y.L. Fernando said the
total number (excluding the Northern province) of employed persons in
Sri Lanka is estimated around 7.5 million. There were 2,383,000
agricultural employees while there were 1,914,000 in the industrial
sector. The services sector had 3,168,000 employees (42 percent).
There was a gradual decline according to the annual unemployment
rates from 2003 - 2008. The total number of unemployment persons in the
second quarter 2009 was estimated around 470,000 (6.3 percent), he said. |