Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that the Coalition Government is considering an upgrade to the 2024 growth forecast, targeting a figure of 3.5 percent or even higher.
In a statement made in Parliament, he highlighted positive developments across key economic indicators. Prasad noted that there has been a notable increase in private sector lending, as well as VAT collections, adjusted for the effects of recent rate changes, which serves as an essential measure of domestic spending. Additionally, government expenditure has risen by 20 percent over the past seven months, alongside increased import activity, higher electricity usage, and a surge in vehicle sales. Improvements in PAYE collections and remittances were also reported.
He emphasized that the tourism sector has outperformed earlier expectations and has surpassed last year’s record figures. While the initial forecast for visitor arrivals was around a 3 percent increase for this year, data from the first eight months indicates an impressive growth of nearly 7 percent. The government now anticipates that visitor arrivals for 2024 may approach 1 million, marking another remarkable year for tourism.
Prasad pointed out a recovery across major sectors and a rise in investments, which are expected to continue improving. The low-interest rate environment has facilitated these investments, and efforts are ongoing across government agencies to enhance service delivery and streamline the business environment.
However, he expressed concerns that the performance of resource sectors remains below their potential, which is an area that requires further attention.