Economy Set To Grow 5.3% In 2026 As Agriculture, Infrastructure Lead Recovery

By Our Correspondent

The economy is projected to grow 5.3 percent in 2026, supported by agriculture recovery, infrastructure investment and improved performance in key service sectors, the Treasury estimates.

The growth forecast appears in the 2026 Budget Policy Statement, which outlines government spending priorities and economic projections ahead of the next financial year.

Treasury projects the economy will expand from about 5 percent growth in 2025, reflecting improved macroeconomic stability and ongoing public investment programmes.

Agriculture remains central to the growth outlook. Government plans include expanding irrigation, strengthening agricultural supply chains and supporting climate-resilient farming to boost productivity.

Infrastructure projects in roads, housing, energy and digital connectivity are also expected to stimulate economic activity and support industrial production.

The services sector, particularly tourism, transport and financial services, is projected to remain resilient and continue contributing to economic expansion.

However, a parliamentary committee reviewing the policy statement warned that growth prospects remain exposed to climate shocks and global economic pressures.

Lawmakers also raised concern over persistent revenue shortfalls that have increased pressure on public finances and borrowing levels.

The fiscal deficit is expected to widen to 5.5 percent of GDP in the 2026/27 financial year, underlining the challenge of sustaining development spending while containing debt.

Government officials say continued investment in agriculture, infrastructure and small businesses will be key to sustaining growth and expanding employment opportunities.