India remains the Global leader and among the fastest growing economies of the world with a population of 1,316 Mn and USD 2,689 Mn.
Bangladesh with 162 Mn people with a GDP of USD 286 Bn has also sustained high economic growth in recent times.
Pakistan With a population of 199 Mn people and economy of USD 306.0 Bn GDP has slowed down its growth momentum, but remains a potentially important player in the region.
Nepal with a population of 29 Mn and an economy of USD 28 Bn sustains 6 percent growth in GDP in its transition to a lower middle income country.
Bhutan and Maldives with smaller in terms of population as well as GDP sustain near 7 percent growth in their respective GDP. Maldives commands the highest per capita income status in South Asia while Bhutan commands one of the happiest country in the world,
Sri Lanka with 21 Mn people and a GDP of USD 92 Bn have lost its growth momentum and its development drive in recent years although it is still commanding the highest per capita income of around USD 4,000 in South Asia next only to Maldives.
Afghanistan with 30 Mn population remains as one of the poorest economies in the world with 2.5 percent growth in GDP and South Asia.

Source : IMF – World Economic Outlook 2018 and Country Economic Updates

By: BiZnomics Special Economic Correspondent

By Biznomics Research Team

Market Embraces Sri Lanka Sovereign Bond Issue

Sri Lanka raised USD 2.0 billion international sovereign bonds on the strength that IMF has endorsed the country’s economic performance, while the bonds having been rated by international rating agencies as “Non-Investment” grade. In fact Moodys attached “B2” rating while Standard and Poor’s and Fitch assigned “B” rating. The USD 500 million face value bond with 5-year maturity was raised at a semi-annual coupon rate of 6.35 percent while USD 1,500 million with 10-year maturity was raised with a semi-annual coupon rate of 7.55 percent. The Bonds were subscribed by 91 percent fund managers while 5 percent came from insurance and pension funds.

Sri Lanka entered in to the international bond market in 2007 and the June 2019 issue was the 14th USD benchmark offering. This was also the country’s second sovereign bond transaction this year. The Government of Si Lanka raised USD 1 billion 5-year bond at a semi-annual coupon rate of 6.85 percent and a 10-year bond at a semi-annual coupon rate of 7.85 percent in March 2019.

Sri Lanka has USD 17 billion ISBs as of June 2019 and account for nearly 50 percent of Government external debt.

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President Trump offered to meet North Korean leader Kin Jong Un at the demilitarised zone following the G 20 Summit raised prospects for a third face to face meeting between the two leaders.

G -20 Osaka Summit

14th G-20 Summit – a forum of 19 member countries and European Union was held in Osaka, Japan 28 -29 June 2019 with the participation of heads of G 20 Governments. International Monetary Fund, Asian Development Bank (ADB), International Labour Organization (ILO), Organization for Economic Corporation and Development (OECD), United Nations (UN), World Bank (WB), World Health Organization (WHO), World Trade Organization (WTO), represented in the summit by their respective heads of Institutions.

Collectively G 20 nations represent more than 80 percent of global output and 2/3 of its people. Easing the global tension centred around US – China trade dispute, President Trump announced that he has agreed to allow US companies to sell high tech components to Chinese telecommunication giant Huawei. He also announced that China will buy more US farm goods. US President indicated that US will call off raising tariff on Chinese goods and negotiations to end the trade dispute between two countries will continue.

Prime Minister Abe who hosted the G 20 Summit explained that global leaders have affirmed free and fair and inclusive economy and open competition are the principals to lead the world economy in future.

Global-Outfront — Source: IMF Economic Outlook

As estimated by IMF total GDP of G20 nations of nearly USD 60 trillion account for 78 percent of the world total GDP of USD 88 trillion. In terms of population, G20 nations is estimated to have 4.6 billion people in 2019 accounting for 61 percent of the world total population of 7.5 billion. China takes the lead with 31 percent and India accounts for 29 percent making two emerging nations in Asia having 60 percent of the population of G20 nation.

By: BiZnomics research team

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