Inflation ( CCPI)1.5% (Oct 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate15.29%
12M T-Bill Rate12.94%
2Y T-Bond Rate14.45%/ 14.50%
4Y T-Bond Rate14.70% / 14.80%
USD/LKR327/328
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

War and Pandemic Increase Prevalence of EM Twin Deficits

InternationalJun 10, 2022
War and Pandemic Increase Prevalence of EM Twin Deficits
Fitch Ratings states it forecasts that more than a quarter of Fitch-rated emerging markets (EMs) will experience budget and current account deficits of at least 4% of GDP in 2022. EM countries running larger current account deficits in the wake of Russia’s invasion of Ukraine and the ensuing jump in energy and food prices. Fitch has downgraded nine different EMs so far in 2022, more than the whole of 2021, and compared with just one upgrade. A record 48% of Fitch-rated EM are now in the B/C/D categories.

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