1Q GDP Underwhelmed By Measurement Lapses: CB

Says same measurement lapses could underestimate 2Q GDP estimates. Points out conventional data collection methods can’t capture new activities. Forecasts 1.7% economic contraction for this year. Statistics office maintains further delays can occur in releasing 2Q and 3Q GDP data

The disappointing first-quarter gross domestic product (GDP) estimates were caused by large lapses in the measurement of the economic activities, as the lockdowns stymied data collection while the traditional collection methods were unequipped to capture the activities that went digital.

Sri Lanka reported a surprise 1.6 percent contraction in GDP during the first quarter, although the economy was closed for roughly about two weeks in March, raising questions on the accuracy of the estimates of the economic output, compiled by the Department of Census and Statistics (DCS).