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 above.
In a statement made in Parliament, he highlighted that significant positive trends are emerging across all major economic indicators related to demand. These include a notable increase in private sector lending, adjusted VAT collections that reflect domestic spending patterns, and a 20 percent rise in Government expenditure over the past seven months. Additional indicators of economic growth include a rise in import levels, higher electricity use, increased vehicle sales, and improvements in PAYE collections and remittances.
Prasad noted, “Our tourism sector is outperforming our initial expectations, surpassing last year’s record levels.” He shared that while the original forecast suggested a 3 percent growth in visitor arrivals for this year, data available indicates nearly a 7 percent increase during the first eight months. The minister anticipates that visitor arrivals will approach 1 million in 2024, marking another record year for tourism.
He also mentioned a positive shift across all major sectors, accompanied by a recovery in investments, which is expected to continue. The current low-interest rate environment has favored investment opportunities, and the government is persistently working to enhance service delivery and streamline business operations.
Nevertheless, Prasad expressed concern that the resource sectors are not performing as optimally as desired and remain below their potential.