Key Economic Characterstisc

In this part of the report the key economic characteristic of Sri Lanka, Oman, The Maldives and India will be analyzed.

Sri Lanka

Firstly the GDP of Sri Lanka will be given. GDP stands for gross domestic product which is the monetary value of all finished goods and service produced within a country in a specific time period. The GDP is an indicator of the economic health of a country. (www.eui.com) The GDP of Sri Lanka moderates to 6.4% in the second quarter of 2012. In the first quarter of 2012 the GDP of Sri Lanka was 7.9%. This decrease in GDP is due to the poor monsoon and weaker external demand. However, substantial growth in the tourism-related services is expected and the rapid expansion of mobile-phone services will continue. The overall economic prospects of Sri Lanka looks bright since large infrastructure projects will be undertaken which will lead to economic growth. There is expected that Sri Lanka will be one of the Asia regions’ stronger performers in 2013-2016.

Another important economic characteristic is the economic freedom. The economic freedom score of Sri Lanka has been increased with 1.2 points to a score of 58.3 . This is due to more trade freedom, monetary freedom and business freedom. There is expected that the economy of Sri Lanka will continue to progress toward greater economic freedom. (www.heritage.org)

Sri Lanka has a population of 20.4 million. The unemployment rate of Sri Lanka was 4.2% in 2011. With this percentage Sri Lanka is ranked on the 38th place out of the 200 countries. This shows that the unemployment rate of Sri Lanka is good. However, the inflation rate of Sri Lanka has been increased from 5.9% in 2010 to 7% in 2011. This is a strong growth and is high compared to the rest of the world.(www.cia.gov)

Oman

Oman has a middle-income economy and is depending heavily on the oil resources. Since the oil resources are declining a development plan has been established which focuses on diversification, industrialization...