Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that the Coalition Government is considering an increase in the 2024 growth forecast to 3.5 percent or more. He pointed out that significant positive trends are evident in major economic indicators.
In a parliamentary address, he noted improvements in several areas, including a 20 percent rise in government spending over the past seven months, increased lending in the private sector, and higher VAT collections adjusted for rate changes. Additionally, trends in imports, electricity consumption, vehicle sales, PAYE collections, and remittances also showed upward movement.
Prasad highlighted the tourism sector’s performance, which has surpassed earlier expectations and previous record levels. Visitor arrivals, initially projected to grow by about 3 percent this year, have increased by nearly 7 percent in the first eight months. He anticipates that visitor arrivals will approach 1 million in 2024, marking another year of record tourism.
He also remarked on the recovery across all major sectors and a rise in investments, which is expected to continue. The low-interest rate environment has been beneficial for investments, and efforts are ongoing across government agencies to enhance service delivery and improve the ease of doing business.
However, the Minister expressed concern that resource sectors are not performing as well as desired and are operating below their true potential.