INSUBCONTINENT EXCLUSIVE:
economy, forecasting a 7 per cent increase in gross domestic product (GDP) for the financial year 2024 (ending 31 March 2025) and 7.2 per
Agricultural improvements will enhance rural spending, which will complement the effects of robust performance of the industry and services
agricultural growth, positively impacting the rural economy in FY2024
The ADB maintains a positive outlook for the industrial and services sectors, along with private investments and urban consumption for both
Furthermore, a new government initiative providing employment-linked incentives for workers and companies could boost labour demand and
fiscal consolidation, central government debt is projected to decline from 58.2 per cent of GDP in FY2023 to 56.8 per cent in FY2024
mentioned.Consumer inflation is expected to rise to 4.7 per cent in FY2024, driven by high food prices, despite the anticipated increase in
However, if improvements in agricultural supply lead to a decrease in food prices, the central bank may consider lowering policy rates in
be 1 per cent of GDP in FY2024 and 1.2 per cent in FY2025, down from the previous forecast of 1.7 per cent for both years, due to better
could disrupt global supply chains and affect commodity prices, as well as weather-related challenges impacting agricultural production
The outlook assumes that the central government will meet its capital expenditure goals in FY2024, the report said.
These risks could be
mitigated by increased foreign direct investment, which may bolster growth and investment, particularly in the manufacturing sector
