Access to finance, productivity problematic says Cabraal


By Mario Andree

Despite the end of a 30 year brutal conflict and sound economic growth the country still needed to harness its full potential for an economic growth of eight percent, while access to finance needed improvement to strengthen local production, observed Central Bank Governor Ajith Nivard Cabraal.

Addressing the 25th Annual Sessions of the Organization of Professional Associations, Cabraal said that the country revised growth targets twice in the current year and expected a 6.8 percent GDP growth by year end.

The Central Bank beginning of the year predicted more than eight percent growth and revised targets to 7.2 percent in April considering global situations, it recently revised the growth target for the second time and forecasted more than 6.8 percent, after successfully growing at eight and 8.3 percent in 2010 and 2011 respectively.

According to him the country in the near future would step forward towards high economic growth in excess of eight percent.

To achieve the target of eight percent growth the country required an investment of more than 35 percent of GDP which he said would be satisfied by national savings and local investment exceeding 23 percent of GDP per annum.

According to Cabraal the other 12 percent would be generated through FDI and high productivity. He said that foreign direct investment was continuing to grow and the government expected it to account for 10 percent of GDP per annum.

Raising concerns on national productivity, Cabraal said, that the country had still not fully utilized its resources. The country after the 30 year brutal conflict grew at eight and 8.3 percent due to increased productivity, however the country still could not be proud of its current rate of production.

While assuring a stable macro economy he said that access to finance was not satisfactory though it had been improved somewhat and the Central Bank expected it to further improve in the coming years to improve greater productivity.

Organization of Professional Associations President, Archt. Plnr. L. T Kiringoda said that the ethnicity issues was yet not over hampering national productivity and growth, and it needed to be addressed urgently for the country’s future journey.

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