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3Q20 made strong comeback: Nielsen

06 Jan 2021

The third quarter of 2020 (Q3'20) witnessed a strong comeback from a resilient nation just after one of the worst-hit quarters in recent times as the key economic indicators showed a positive swing, according to a recent dashboard on Q3’20 released by Nielsen Company Lanka (Pvt.) Ltd.  According to the dashboard, the business and consumer sentiments picked up and the General Trade recorded a V-shaped recovery. Furthermore, it noted that Sri Lanka’s trade deficit narrowed, driven by the ongoing restrictions on imports. According to the Central Bank of Sri Lanka, the country has been able to save $ 3.3 billion in the first 10 months of 2020. This was also underpinned by the sharp reduction in world oil prices, according to Nielsen.  “Sri Lanka’s GDP growth rate moved back to the positive territory in Q3'20 post one of the sharpest drops in recent times. The momentum was driven through all sectors,” noted Nielsen. In addition to this, commercial bank rates further dropped towards August 2020 while the exchange rate stabilised. The Index of Industrial Production (IIP) was stable after a quick rebound post the first wave lockdown. A drop in official reserves was witnessed in September after a gradual increase in the past months. Amidst the rise in infected cases during the second Covid-19 wave, business and consumer sentiments dropped in October 2020.  Meanwhile, the impact of coronavirus remained the key pressing issue for business in September 2020. Additionally, the magnitude of the impact of interest rates had also gone up. Although the state of personal finance and time to buy in still remain bleak, sentiments on job prospects had gone up in September 2020. According to Nielsen, consumers are planning to save more in the future; however, they are also willing to spend on children and committed to improving living standards.


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