‘Upward trajectory’ for GDP growth, agriculture sector recovers – Nielsen
View(s):Sri Lanka’s Gross Domestic Product (GDP) growth is on an “upward trajectory” again, in the third quarter of 2014, a consequence of the agriculture sector recovering following a poor showing in the last quarter, according to a Nielsen report issued this week.
Titled the Nielsen “Q3 2014 Dashboard”, this latest report from the top international marketing research agency continued on to signal that the Sri Lankan rupee to US dollar exchange rates had stabilised, and inflation and interest rates were declining.
Additionally, it also highlighted the fact that domestic trade, construction, manufacturing and transport are the major sources of GDP growth, having contributed 5.3 per cent to the second quarter’s 7.8 per cent GDP growth figure. Referencing the Nielsen Consumer Confidence Index and the LMD-Nielsen Business Confidence Index, the report also stated that, while consumer and business confidence was flat in the third quarter up to September 2014, consumer confidencehas picked up “sharply” since then. Elaborating further, it also noted that the rise in consumer confidence was in line with “strong” recovery in Fast Moving Consumer Goods (FMCG) purchases. FMCG revenues had grown by 15 per cent in this quarter, with as much as 10 per cent due to consumers buying more, or volume growth, while only 5 per cent was as a result of price increases.
The report also commented that, per the most recent Nielsen Consumer Confidence Survey, fewer people had answered “I have no spare cash” in third quarter to compared to corresponding periods. It also went on to state that “people have been paying off debts/loans and used the cash on children’s tuition”. It also flagged an increase in the percentage spending on family outings.
In closing, the report also opined that the economy has been less of a concern for consumers in the third quarter of 2014, at least when compared to children’s education and welfare. (JH)