Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that the Coalition Government is considering an increase in the growth forecast for 2024 to 3.5 percent or more.
During a speech in Parliament, he pointed out that key economic indicators are displaying notably positive trends. He highlighted significant developments in several areas, including a rise in private sector lending, increased VAT collections—after adjusting for rate changes, a 20 percent growth in government spending over the past seven months, and a surge in import activity. Additionally, there has been higher electricity usage, a boost in vehicle sales, and improvements in PAYE collections and remittances.
Prasad emphasized that the tourism sector has surpassed initial expectations, noting, “While we projected a 3 percent growth in visitor arrivals for this year, the data shows an increase of nearly 7 percent in the first eight months.” He indicated that there has been a steady influx of record arrivals each month, with the expectation that visitor numbers will approach 1 million by 2024, marking another year of significant tourism growth.
He also mentioned a positive turnaround in all major sectors and an uptick in investments, which are anticipated to continue growing. The current low-interest rate environment has been beneficial for investments, and the government is actively working to enhance service delivery and simplify business operations.
However, he acknowledged that resource sectors are still underperforming relative to their potential and have not yet met expectations.