Thursday, July 2, 2009

Asian economist predicts 4% growth for Sri Lanka

A senior Asian economist yesterday forecasted Sri Lanka’s growth to be at 4% this year and is expected to grow to 6% in 2010. While stating that the US recession has ended, the US Dollar was predicted to weaken in the coming years as the Euro gained strength.

HSBC Singapore based economist for the Asia Pacific region Prakriti Sofat explained that the US recession which reached its peak on March 28 will end after the average 4.7 week estimated cycle driven by stabilising consumer expenditure and a resurfacing housing market. She added that the European region will continue to face a retracting economy of -4.3% this year with the Asian economy bouncing back faster with support from China and India.
Speaking on Sri Lanka she stated that with the end of the recession in the USA, consumer spending will stabilise and result in a turnaround for the Sri Lankan economy as 60% of the country’s exports are to the USA. “However, the country’s growth is spurred on by the massive boost from the domestic economy that we expect will take place this year.”
The low levels of reserve money in the country appear to be a damper however, but rapidly evaporating levels of inflation indicate that there is going to be a turnaround.

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