Annual real GDP increased by 4.9% in 2021, after a decrease of 6.4% in 2020.

The country’s economy has been hampered by the Covid-19 pandemic, as well as the unrest in July.

Eight of the ten manufacturing divisions reported growth in the fourth quarter.

The manufacturing industry increased by 2,8%, the trade, catering, and accommodation industry increased by 2,9%, the agriculture, forestry, and fishing industry increased by 12,2%. While the transport, storage, and communication industry increased by 2,2%.

The petroleum, chemical products, rubber, and plastic products division made the largest contribution to the increase in fourth-quarter growth.

The food and beverages division and textiles, clothing, leather, and footwear division also made significant contributions to growth.

Increased economic activities were reported for retail trade, motor trade, and catering and accommodation services.

According to Chief Economist at Econometrix, Dr Azar Jammine, the economy was always expected to expand in 2022 due to the easing of lockdown restrictions.

“We expected a significant improvement in GDP in the fourth quarter, compared to the third quarter because we had incorporated the looting and unrest that depressed some sectors very severely.

“We don’t know what will happen next, there is a lot of uncertainty arising out of the Russian invasion of Ukraine, the prices of many commodities are soaring ahead. It is quite likely that the increase in inflation resulting from this will depress global activity severely.”

Jacaranda News