Rupee devaluation ‘impetus for price driven growth’ – Nielsen
View(s):September 2015′s significant devaluation of the Sri Lanka Rupee “could provide an impetus for price driven growth for (Fast-Moving Consumer Goods)” with price increases being a possibility, according to market researcher Nielsen. It also added in media release that, previously, growth in this sector, which includes everything from processed foods and beverages, to toiletries and over the counter (OTC) drugs, “has largely been sustained predominantly by volume increases in the last four quarters”.
Further, it also noted that General Trade quarterly growth has “slowed to 5 per cent in Q3″, while inflation is “likely to pick up due to sharp Sri Lankan Rupee devaluation post general elections”.Making these comments in its December 2015-issued “Q3 2015 DASHBOARD Sri Lanka” market research report, Nielsen further observed, “Economic growth remained strong in Q2 2015, driven by wholesale and retail trade, transportation, financial services and manufacturing. Agriculture sector growth remained weak however”.
Elaborating even more, the report also signalled that the services sector has been the key driver of growth, with an increase in contribution particularly from Financial Services and Real Estate activities. It also emerged that year-on-year GDP growth had increased, to 6.7 per cent, in Q2 2015, from 1.9 per cent, in Q2 2014.Nielsen also indicated that business and consumer confidence “rose on hopes of a stable government Post August General Election. Although both indices declined somewhat subsequently, the underlying trend shows an increase in confidence among both businesses and consumers”.Additionally, Nielsen also revealed that health, job security and political stability, along with the economy and children’s welfare, were growing, major concerns related to consumer confidence.
(JH)