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.
In a statement made in Parliament, he highlighted positive trends in key economic indicators. These include significant increases in private sector lending, VAT collections adjusted for rate changes, and a 20 percent rise in government spending over the past seven months. Additionally, trends in imports, electricity consumption, vehicle sales, and improvements in PAYE collections and remittances have all shown notable growth.
Prasad noted that the tourism sector is performing even better than anticipated, with visitor arrivals expected to increase close to 7 percent in the first eight months of the year, surpassing the previously projected 3 percent growth. He expressed optimism that visitor arrivals would approach 1 million in 2024, marking another year of record tourism.
He also pointed out a resurgence in all major sectors and an uptick in investments, aided by a low-interest rate environment. The government is focused on enhancing service delivery and improving the ease of doing business. However, he acknowledged that resource sectors have not yet reached their full potential.