Galloping growth

December 16, 2010 @ 12:21 am 

Sri Lanka’s Gross Domestic Product (GDP) for Q3 ending in September hit 8% according to the latest report from the Census and Statistics Department, but was a marginal dip of 0.5% when compared to Q2, which recorded the highest growth since 2000.The economic output of Sri Lanka as measured by Gross Domestic Product (GDP) for Q3 (July-September), of 2010 at constant (2002) prices is estimated at Rs. 690.7 billion as against Rs. 639.3 billion in Q3 of 2009, registering an eight per cent growth rate.

This growth rate is noteworthy as it is the second highest ever recorded quarterly GDP growth since 2002. The highest growth rate was recorded as 8.5 per cent in the second quarter of this year, the department said in a statement. A year ago the growth was 4.2%  

The three major sectors of the economy – agriculture, industry and services – registered significant growth rates as 6.2 per cent, 8.8 per cent and eight per cent respectively in Q3 of 2010 over the same quarter of the previous year.

The sub sectors which registered relative significant growth among the major sectors in the third quarter of 2010 are rubber 15.9 per cent, paddy 30.7 per cent, fishing 14.4 per cent, mining and quarrying 21.4 per cent, electricity, gas and water 8.5 per cent, construction 11.3 per cent, wholesale and retail trade 7.7 per cent, hotels and restaurants 32.2 per cent, transport and communication 12.4 per cent and banking, insurance and real estate 8.5 per cent.

The percentage share of the three major sectors agriculture, industry and services to the total GDP was reported as 12 per cent, 28.5 per cent and 59.5 per cent respectively. 

The department also pointed out that the index number of the GDP implicit price deflator rose to 205.2 in the Q3 of 2010, from 192.1 in the same quarter of 2009, registering an inflation rate of 6.8 per cent for Q3 2010. 

The Colombo Consumers price index (2002=100), which reflects the average price level of consumer goods, increased to 220.7 in Q3 2010 from 208.5 in Q3 2009. Accordingly, the year-on-year inflation rate is recorded as 5.9 per cent in Q3 of 2010 whereas it was 0.9 per cent in the same quarter of 2009.

The agriculture, forestry, and fishing sector showed 6.2 per cent growth during Q3 of 2010 as against -0.5 per cent during the same quarter in the previous year.

The overall service sector marked eight per cent growth in Q3 2010 against 5.1 per cent growth in the same quarter of 2009, making ever highest growth in a third quarter since 2002. The real terms value added of the industry sector grew by 8.8 per cent in Q3 2010 against 4.4 per cent growth in Q3 2009. The manufacturing sector, which is the largest portion of the industry sector, grew by 6.5 per cent in Q3 2010.
 
“The construction sub sector grew by 11.3 per cent in Q3 2010 as against 6.4 per cent growth in the same quarter in the previous year. This Q3 growth is the highest ever recorded quarterly growth achieved since 2002. This highest growth was mainly supported by the diverse projects initiated by the Government, ranging from village level small road development activities to mega development projects. In addition to these, currently operated rehabilitation and resettlement programmes especially in Northern and Eastern Provinces also propelled the growth.” 

source - www.ft.lk