Country's Industrial Sector Poised for Strong Recovery in 2024-25

The industrial sector of the country is set to experience a recovery in the upcoming fiscal year 2024-25, with a targeted growth rate of 4.4 percent. This growth is expected to be primarily fueled by a 3.5 percent increase in Large Scale Manufacturing (LSM). Several factors are contributing to this positive outlook, including improved input and energy supplies, anticipated reductions in global oil and commodity prices, relaxation of import restrictions, higher public sector spending, exchange rate stability, and a decrease in interest rates.

Furthermore, the construction industry is also expected to see growth, with a projected growth rate of 5.5 percent in 2024-25, supported by anticipated decreases in construction material prices. The services sector is forecasted to grow at a rate of 4.1 percent, with commodity-producing sectors expected to grow by 3.1 percent, complementing the growth in services.

This increase in economic activity, particularly in the manufacturing sectors, is likely to result in improved growth in wholesale and retail trade, as well as transport, storage, and communications. The total investment-to-GDP ratio is estimated to rise from 13.1 percent in 2023-24 to 14.2 percent in 2024-25, driven by an anticipated economic upturn, enhanced business environment, and political stability.

Fixed investment is on track to increase by 27.6 percent nominally, with its percentage of GDP expected to climb from 11.4 percent in 2023-24 to 12.5 percent in 2024-25. National savings are targeted to reach 13.3 percent of GDP in the fiscal year 2024-25.

The projected growth in the industrial sector, construction industry, and services sector for the fiscal year 2024-25 paints a positive economic outlook for the country. With various factors aligning to support this growth, including improved input supplies, reduced commodity prices, and increased investment, the economy is poised for expansion. This anticipated growth not only signifies a recovery from previous challenges but also presents opportunities for increased employment, business development, and overall economic prosperity.