Economy to Grow by 4% – IMF
IMF, in its ‘World Economic Outlook April 2021 Report’ released on Tuesday (6) forecast that Sri Lanka’s economy would expand by four per cent this year after contracting to a historically low figure of 3.6 per cent last year, driven down by the COVID-19 Pandemic.
It also forecast that the economy will expand by 4.1 per cent next year and by 4.2 per cent in 2026.
The IMF also forecast that the current account deficit in the balance of payments will sharply contract to 2.3 per cent next year, from a lower contraction rate of 1.4 per cent experienced last year. IMF also expects the contraction of the current account in the balance of payments next year to marginally decelerate to 2.2 per cent, while this contraction is expected to sharply decelerate to 1.6 per cent in 2026.
IMF in its estimates also envisaged that inflation would decelerate to 4.4 per cent this year, from 4.6 per cent in the last. IMF, however, forecasts that inflation will accelerate to five per cent next year and be at that level (five per cent) in 2026.