Snapshot of the Economy
Here’s a quick look at how key economic variables have performed during the year so far
The key to understanding their performance:
Gross Official Reserves: After reaching a high of almost US$9bn in June, reserves deteriorated during the second half of 2019 owing to repayments of debt due.
Trade deficit: Fell throughout the first 11 months of 2019, due to a decline in import expenditure and higher textile exports
Foreign holdings: Foreign outflows accelerated during 2H2019, amounting to approximately US$230mn within the period.
Global situation: Despite some concerns, global financial conditions were relatively stable during 2H2019, with a prospect of a ‘Phase 1’ trade deal between US and China, while easing monetary policy conditions across the world saw increased portfolio flows to Emerging markets.
USD/LKR: Sharper foreign outflows saw the rupee weaken in 2H2019, following a strong start to the year.
Credit to private sector: YOY growth slowed to a 5-year low in November, although absolute monthly credit growth began to pick up.
Inflation: Higher in the latter half of 2019, due to unfavourable weather conditions, although core inflation moderated.
If you would like to look at the underlying numbers on each of these variables, click the button below