GDP records 7.1 percent growth in Q1

The economic output of Sri Lanka as measured by Gross Domestic Product (GDP) for the first quarter (Q1) (January-March), of 2010 at constant (2002) prices is estimated at Rs. 643,539 million as against Rs. 601,084 million in the first quarter of 2009, registering a 7.1 percent growth, the Census and Statistics Department said.

The three major sectors of the economy namely, agriculture, industry, and services registered significant growth as 9.0 percent, 6.9 percent, and 6.7 percent respectively, in the first quarter of 2010 over the same quarter of the previous year.

The sub sectors which registered relative significant growth among the sectors in the first quarter of 2010 are ‘Tea’ 47.2 percent, ‘Rubber’ 11.7 percent, ‘Minor Export Corps’ 118.2 percent, ‘Construction’ 8.5 percent, ‘Hotels and Restaurant’ 61.0 percent, and ‘Transport and Communication’ 10.4 percent.

The percentage share of the three major sectors, the Agriculture, Industry and Services to the total GDP more or less remain unchanged being 13.8 percent, 28.4 percent and 57.8 percent respectively.

The index number of GDP implicit price deflator rose from 191.7 in the first quarter of 2009 to 213.2 in the same quarter of 2010, giving an inflation rate as 11.2 percent for the Q1 2010.

Colombo Consumers’ Price Index (2002=100) which reflects average price level of consumers goods increased to 216.0 in the Q1 2010 from 202.7 in the first quarter of 2009.

Accordingly, the inflation rate is recorded as 6.6 percent in the first quarter of 2010 whereas it was 7.8 percent in the same quarter 2009.

The ‘Agriculture, Forestry and Fishing sector’ showed a 9.0 percent growth during the first quarter of 2010 as against the growth of 3.6 percent during the same quarter previous year.

The real terms value added of the industry sector grew by 6.9 percent in the Q1 2010 compared with a 1.9 percent growth in Q1 of 2009. The manufacturing sector which is the largest portion of industry sector grew by 5.8 percent in the first quarter of 2010. The export value of precious stones was increased by 27.9 percent during the reference period. The factory industry grew by 5.4 percent Department said.

Food and beverages industry registered exceptional growth of 6.8 percent. Textile, wearing apparel, and leather products grew by 0.8 percent for the reference period.

The service sector recorded 6.7 percent higher growth rate has been achieved Q1 2010 due to recovering position of its major subsectors such as Wholesale and Retail trade, Hotels and Restaurants, and Transport, and Communication sectors. The growth rate in the same quarter of 2009 however, was as low as 1.0 percent.

The export trade sector recorded a 4.0 percent decrease due to lower export volumes. Export earnings recorded as US $ 1,764 million in the first quarter of 2010 against US $ 1,647 million in the first quarter of 2009 indicating a 7.1 percent growth.

The import trade sector grew by 5.8 percent in the reference period.

The import expenditure recorded to US $ 3,225 million in Q1 2010 against US $ 2,312 in the same quarter of previous year recording 39.5 percent increase. Import expenditure fell by 30.3 percent for the same quarter of 2009.

Domestic trade sector grew by 8.3 percent higher rate compared with Q1 2009 which was only 3.8 percent.