FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» LOFC AND CLC Target Price??
by reyaz Today at 3:44 pm

» KOTAGALA PLANTATION
by reyaz Today at 3:33 pm

» GUYS LOOK IN TO JKH / JKL NOW
by reyaz Today at 3:25 pm

» LOFC LOFC LOFC
by smnsam Today at 2:25 pm

» The stock market can be a great place to make money; it can also be a great place to lose money. Stock market for beginners
by D.G.Dayaratne Today at 7:33 am

» BROWNS INVESTMENTS PLC (BIL.N0000)
by MoneyLover Yesterday at 7:16 pm

» What is "Introductions" in Upcoming listing in CSE?
by Nandun Yesterday at 1:46 pm

» Glove stocks fall after Top Glove posts weaker 4Q results
by ResearchMan Yesterday at 1:37 pm

» Top Foreign Trading today
by SAGA Fri Sep 17, 2021 6:32 pm

» Top crossings today
by SAGA Fri Sep 17, 2021 5:01 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Sunimal Fri Sep 17, 2021 12:52 pm

» Amana Takaful ATL & ATLL
by kanishkaecomm Fri Sep 17, 2021 12:17 pm

» Best Time to Collect Cic X
by Value Pick Fri Sep 17, 2021 8:15 am

» Why is First Capital Holdings being dumped?
by Berryfund Fri Sep 17, 2021 6:29 am

» AGST can move
by Zayden River Thu Sep 16, 2021 11:58 pm

» COMMERCIAL CREDIT AND FINANCE PLC (COCR.N0000)
by newone Thu Sep 16, 2021 11:57 pm

» AGSTAR PLC (AGST.N0000)
by Zayden River Thu Sep 16, 2021 11:57 pm

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by Bakkabwoi Thu Sep 16, 2021 8:10 pm

» Twitter accounts related to the stock market
by Bakkabwoi Thu Sep 16, 2021 8:09 pm

» TOKYO CEMENT COMPANY (LANKA) PLC
by xhunter Thu Sep 16, 2021 7:55 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » EXPERT CHRONICLE™ » All clear for a stronger GDP growth trajectory in 2021

All clear for a stronger GDP growth trajectory in 2021

Go down  Message [Page 1 of 1]

samaritan

avatar
Moderator
Moderator
All clear for a stronger GDP growth trajectory in 2021 All

Leading stockbroking firm Asia Securities (Pvt) Ltd., maintained that all signs point to a strong GDP growth trajectory in 2021. The latest Economic Outlook report titled Balancing the Priorities – The New Normal forecasts a GDP growth of 5.4% for 2021, driven by improved investor sentiment and consumer demand, an accommodative monetary policy environment, and a pickup in global demand.

Asia Securities’ report on 27 March 2020—the first such report to forecast the impact of COVID-19—forecasted the economy to contract by 13.0%—17.0% YoY in 2Q 2020. The report considered three probability-weighted scenarios combining a top-down and bottom-up analysis. The firm’s assessment was in-line with the 16.3% YoY contraction for 2Q 2020. While the outlook for 2021 remains largely positive due to improved policy certainty and a stable government, the firm notes that several challenges remain.

The 2021 budget emphasizes on a domestically driven recovery amidst fiscal support. With improving business and consumer confidence seen following the end of the first lockdown, a continued low interest rate environment bodes well for investments in the short-medium term. However, a negative real interest rate environment will likely continue in 2021.

Sri Lanka looks to head towards a negative real interest rate environment in 2021

Foreign Direct Investments (FDI) will take center stage in 2021 with the government’s focus on executing investment driven FDIs, particularly related to the Port City and Hambantota Port zone. The Asia Securities report notes that attracting long term non-debt related inflows is a key factor at this juncture of the Sri Lankan economy. Improving the FDI landscape can resolve two long-term issues: (i) the dependance on external financing and (ii) fiscal pressure. The report further highlights that there is potential for FDI to reach 4.0% – 5.0% of GDP in the long term if correct policy measures are in place.

One of the key challenges going into 2021 is the government’s debt obligations amidst a low credit profile. With a USD 4.5bn repayment schedule in place for 2021, the government would need to ensure that reserves are maintained at relatively healthy levels. We expect the government will continue to depend on domestic financing. However, with credit growth expected at ~8.0 – 10.0% YoY in 2021, Asia Securities expect interest rates to face upward pressure. While this may lead to higher debt rollover costs, it could be mitigated if non-debt related investments materialise in-line with expectations. In addition, Asia Securities forecast indicate that inflation will remain within the Central Bank’s threshold of 4.0% – 6.0% in 2021. While Asia Securities forecasts the fiscal deficit to weaken in 2021, the firm notes that an increase in the revenue base and higher growth can bring the overall deficit down by 2023.

Asia Securities is a leading investment firm in Sri Lanka providing Investment Banking, Research, Equities and Wealth Management services to local and international corporate, institutional and individual clients. Asia Securities’ clients can access the full research report titled Sri Lanka: 2021 Economic Outlook – Balancing the Priorities – The New Normal via the online Research portal or their investment adviser. To become a client of Asia Securities, reach out via inquiries@asiasecurities.lk.

https://island.lk/all-clear-for-a-stronger-gdp-growth-trajectory-in-2021-asia-securities-research/

unquote:

In my view CSE will witness an unprecedented bull run in 2021 for sure. As a prelude market is already witnessing a 'BIL run'. GL


All clear for a stronger GDP growth trajectory in 2021 2Q==


_________________




The biggest risk in life is not taking any risk at all.

Kipling likes this post

Share this post on: redditgoogle

No Comment.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum