The Ministry of Finance states that the Second Advanced Estimates released by the Central Stastical Organisation (CSO) indicate a broad-based and significant acceleration of real economic activity as projected in the Economic Survey.

Estimates for real GDP growth for 2017-18 have been revised upwards to 6.6 percent, compared with 6.5 percent in the First Advance Estimates. Similarly, real GVA growth for 2017-18 has been revised upwards from 6.1 percent to 6.4 percent. Real GDP growth for the third quarter is estimated at 7.2 percent, up from 6.5 percent in the second quarter; real GVA growth has accelerated from 6.2 percent in Q2 2017-18 to 6.7 percent in Q3 2017-18.

In a statement, the Ministry of Finance states that the growth acceleration has been sectorally broad-based with manufacturing growth estimated at 8.1 percent for Q3 2017-18, up from 6.9 percent in Q2 2017-18; construction growth at 6.8 percent in Q3 2017-18, up from 2.8 percent in Q2 2017-18; and services growth projected to accelerate to 7.7 percent in Q3 2017-18 from 7.1 percent in Q2 2017-18. The Ministry states that the such robust growth in manufacturing and significant acceleration in construction mark a turnaround in the country’s economic growth momentum.

Significantly, heralding an improvement in the investment climate, real gross fixed capital formation is estimated to grow at a robust 7.6 percent for 2017-18, accelerating from 6.9 percent in Q2 2017-18 to 12 percent in Q3 2017-18, it concluded..

Economic growth acceleration signals sectoral recovery and stronger investment climate with manufacturing and construction leading the turnaround. The Second Advance Estimates revise 2017-18 annual real GDP and GVA growth upward and record a quarter on quarter acceleration, with manufacturing and construction leading the recovery. The statement highlights a substantial acceleration in real gross fixed capital formation between Q2 and Q3 that is presented as evidence of an improving investment climate.