Economy races to 7.3% growth in 2013

Tuesday, 18 March 2014 01:11 - - {{hitsCtrl.values.hits}}

Finalised data from Census and Statistics confirms rebound from 2012 despite challenges and scepticism
Agriculture at 10.8% and services sector at 56.8% mark the lowest-ever share of GDP in a decade whilst industry records its highest at 31.1%
Services sector only growth driver; agriculture and industry lag

Confirming the rebound despite challenges and scepticism, the country’s economy in 2013 has grown by 7.3%, up from 6.3% in the previous year. The Department of Census and Statistics, which has come in for its own quota of criticism concerning credibility of data, announced yesterday that the country’s Gross Domestic Product (GDP) grew 8.2% in 4Q2013 (vs. 6.3% in 4Q2012 and 7.8% in 3Q2013), resulting in a growth of 7.3% in FY2013 (vs. 6.3% in FY2012). The 7.3% was slightly highest that forecast of 7.2% made by the Central Bank in its Road Map for 2014 in January. The average growth from 2006-2013 (eight years) was 6.7%, and from 2010-2013 (four years) was 7.5%, showing evidence of a sustainable growth model. The Central Bank is forecasting 7.8% growth in 2014. The department however lowered the 2012 final full year growth marginally to 6.3% from the previously reported 6.4%. The 2012 growth was the lowest since 2009, which was 3.5%. The Agriculture sector (9% of total GDP) rose 10.4% in 4Q2013 (vs. a growth of 0.3% in 4Q2012), largely due to the 57% increase in the paddy segment, amidst the favourable weather conditions. Overall the Agriculture sector grew by 4.7% in 2013, down from 5.2% in 2012. The Agriculture sector’s share in the full 2013 was 10.8% lowest in history and down from 11.1% in 2012. The Industry sector (33% of total GDP) rose 10.7% in 4Q2013 (vs. 13.4% in 4Q2012), driven by the 13% growth in the construction segment (9.0% of total GDP). Overall the industry sector grew by 9.9% down from 10.3% in 2012. The industry’s share was 31.1%, highest on record and up from 30.4% in 2012. The Services sector (58% of total GDP) growth rose to 6.5% in 4Q2013 (from 3.7% in 4Q2012) mainly due to the import trade segment (8.3% of total GDP) rising 2.0% (vs. a decline of -2.0% in 4Q2012). Overall, the Industry sector grew by 6.4% up from 4.6% in 2012. The Services sector’s share was 56.8%, down from 57.5%, and was the lowest in a decade.