Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that the Coalition Government is considering raising the 2024 growth forecast to 3.5 percent or more.
He noted that major economic indicators for demand are showing encouraging signs. While addressing Parliament, he highlighted a 20 percent increase in government expenditure over the past seven months, a rise in private sector lending, adjusted VAT collections, increased electricity consumption, higher vehicle sales, and improved PAYE collections and remittances.
Prasad mentioned that the tourism sector has surpassed previous expectations, with visitor arrivals growing by nearly 7 percent in the first eight months of the year, compared to an anticipated growth rate of around 3 percent. He projected that total visitor arrivals could approach 1 million in 2024, marking another record year for tourism.
The minister emphasized a turnaround in all major sectors alongside a boost in investments, aided by a low-interest rate environment. The government is actively working on improving service delivery and easing business operations. However, he expressed concern that resource sectors are underperforming and not reaching their full potential.