Inflation ( CCPI)35.3% (April 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.60%
12M T-Bill Rate22.97%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
USD/LKR297/298
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $862Mn (March 2023)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

War and Pandemic Increase Prevalence of EM Twin Deficits

InternationalJun 10, 2022
War and Pandemic Increase Prevalence of EM Twin Deficits
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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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