Kerala economic growth nosedives to 3.45 percent from 6.49 percent
Thiruvananthapuram: The Economic Review report for 2019-2020 tabled by the Kerala government in the Assembly on Thursday showed a decline in the economic growth of the state to 3.45 percent from the 6.49 percent recorded in 2018-19.
The report stated that the natural calamities including floods and the Covid pandemic affected the economy adversely.
The report presented by Finance Minister Thomas Isaac also said that the Kerala’s economy in terms of Gross State Value Added (GSVA) will shrink by 26 percent in the first quarter of 2020-21 due to Covid-19 crisis and the subsequent lockdown.
According to the report, the public debt of the state increased by Rs 1.66 lakh crore and reached Rs 2.60 lakh crore.
Rs 2,629 crore decline in revenue income was recorded. Rs 25,000 crore loss was recorded in the tourism sector due to the pandemic. this is estimated until September 2020.
The unemployment rate also increased to 9 percent, the report further stated.
There has been a decrease of Rs 1.56 lakh crore in the domestic income of the state. The return of the expatriates also was a setback to the state’s economy, minister Isaac said in the report.
The agriculture and allied sector growth continues to remain in negative. However, there has been an increase in the production of paddy. It increased from 1.52 percent to 5.42 percent. Also, the vegetable production increased to 23 percent. The agricultural loans have increased to Rs 73,034 crore, the report stated.
Finance minister Thomas Isaac will present the state budget on Friday.