Economy grows by 1.5% for first time in third quarter
Economic activity has seen a 1.5% growth in the third quarter of 2020 with the normalisation of business activities and return to new-normality, after the first wave of the COVID-19 pandemic, the Census and Statistics Department (DCS) said yesterday.
Releasing the National Accounts Estimates of Sri Lanka for the third quarter, the DCS said this favourable condition affected on economic activities to perform well, especially in the third quarter and has resulted in recording a 1.5 percent positive growth rate in the economy for the first time for 2020.
“This recorded positive growth rate reflects the great recovery of the economy after the contraction in economy in first and second quarters of this year. Accordingly, over all Agriculture and manufacturing activities and many of the service activities including wholesale and retail trade, goods and land passenger transport, IT industry, telecommunication industry, financial and insurance services, real estate activities, professional services and private health services have reported positive growth rates when compared to the third quarter in the year 2019”.
Issuing a communiqué, on releasing National Accounts Estimates for the third quarter of 2020, the DCS stated that the GDP growth rate for the third quarter of 2020 has been estimated as 1.5 percent of positive growth rate when compared to the 2.4 percent of positive growth recorded in the third quarter of 2019.
The Gross Domestic Product for Sri Lanka for the third quarter of 2020 at constant price has increased up to Rs. 2,545,863 million from Pcs. .2,509,418 million which recorded in the third quarter of 2019. In addition, the Gross Domestic Product for Sri Lanka for the third quarter of 2020 at current price has increased up to Rs. 4,085,213 mi1lion from Rs. 3,833,960 million which recorded in the third quarter of 2019 registering 6.5 percent of change in the current price GDP.
The DCS release includes the estimated Gross Domestic Product (GDP) at current price and at constant (2010) price in Production approach and other macroeconomic indicators for the third quarter (July 1’st to September 30th) of 2020.
The DCS report states that the four major components of the economy; Agriculture’, Industry’, Services and ‘Taxes less subsidies on products have contributed their share to the GDP at current prices by 8.2 percent, 27.7 percent, 56.8 percent and 7.4 percent respectively in the third quarter of 2020.
Accordingly, for the first time in 2020, all three major economic activities Agriculture, Industry and Services, have reported positive growth rates in the third quarter of 2020, showing recovery in the major economic activities after the COVID-19 pandemic.
The Agriculture sector, has reported a substantial growth in the value addition of the agricultural production by 4.3 percent during the third quarter in the 2020.
Following that the industrial sector, has also reported 0.6 percent of growth during this quarter. Out of that, the manufacturing industry, has shown a significant growth by 5.3 per cent during this quarter, when compared to the third quarter in year 2019.
Moreover, the service sector too recorded 2.1 percent of positive growth during this quarter, the DCS said.
source http://www.dailynews.lk/2020/12/25/local/237069/economy-grows-15-first-time-third-quarter
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