GDP records 3.7% growth in 2021 | Daily News

GDP records 3.7% growth in 2021

The Gross Domestic Product for Sri Lanka in 2021 at a constant price has increased up to Rs. 9,8111,397 million from Rs. 9,532,909 million which was recorded in 2020. However, in 2020, the real GDP level reduced up to this said level from Rs. 9.890,468 million which was recorded in 2019.

The year on year GDP growth rate for 2021 in Sri Lanka has been estimated as a 3.7% of positive growth rate. This positive growth comes against the backdrop of a 3.6% contraction in the economy reported in 2020, according to the Department of Census and Statistics –national Accounts Estimates of Sri Lanka fourth quarter 2021.

In 2021, the year on year GDP growth rate has been calculated based on that reduced level of real GDP. Accordingly, the following figure reflects the level of recovery of the economy in 2021, after the contraction reported in the economy in 2020. The Gross Domestic Product for Sri Lanka for 2021 at the current price has increased up to Rs. 16.809.309 million from Rs. 15,027,374 million recorded in 2020 registering an 11.9% positive change at the current price level.

The three major economic activities of the economy; ‘Agriculture’, ‘Industry’ and Services and have contributed their share to the GDP at current prices by 9%, 27.8% and 57.5% respectively, while taxes less subsidies on products’ component has contributed 5.7% of share to the GDP in 2021.

During the year 2021, all three major economic activities recorded moderate positive growth rates of 2.0%, 5.3% and 3.0% respectively by Agriculture, Industrial and Services activities. These recorded high growth rates come back as a result of the contraction reported in these activities in the year 2020.

The previous National Accounts Estimates, released by the DCS for the first, Second and Third quarters of 2021 and as well as for the last year 2020; mirrored the severity of the adverse impact of the C-19 pandemic on Sri Lanka’s economy.

In 2021, the overall industrial activities have reported a considerate level of growth of 5.3% compared to the contraction reported in 2020. The overall manufacturing industry expanded by 7.2% during the year 2021 when compared to the previous year.

Among the ‘Industrial activities’, the ‘Construction’ activity, which corresponds to 6.8% of share within the industry sector, recorded a slight positive growth rate of 1.9% during 2021. Further, the ‘Mining and quarrying’ activity too recorded a positive growth rate of 2.8% during this year.

Meanwhile, the ‘Electricity, gas, steam and air conditioning supply’ activity has reported a positive growth rate of 6.1%. During the year 2021, the performance of the Service sector too recorded a 3.0% of moderate growth rate in overall services related activities.

The expansion in the services sector was underpinned especially by the sub-activities of ‘IT programming consultancy and related activities’ (21.7%), ‘Telecommunication’ (16.2%), ‘Financial service activities’ (7.5%), ‘Insurance activities’ (5.1%), ‘Human health activities’ (5.7%) and ‘Educational services’ (43%).

However, the accommodation, food and beverage serving activities and all activities related to entertainment are yet to achieve growth in their individual level activities.

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