GDP growth slows to a 11-year low of 4.2%, Q4 slumps to 3.1%
Economic growth slowed to a 11-year low of 4.2% in 2019-20, according to provisional estimates released by the National Statistical Office.
- The final quarter of the fiscal year, the January-March period, saw the expansion in the Gross Domestic Product (GDP) slump to 3.1%, reflecting the impact of the first week of the nationwide COVID-19 lockdown, which began on March 25.
- Fourth-quarter growth, while the slowest in 44 quarters, however, was still faster than the 2.2% pace predicted by most economists and ratings analysts.
- Agricultural output and the mining sector picked up steam in the fourth quarter, growing at rates of 5.9% and 5.2% respectively, even while manufacturing contracted further, with output shrinking by 1.4%. Public administration, defence and other services grew at 10.1%.
- Although the budget estimate for GDP growth in 2019-2020 had been pegged at 8.5%, the NSO’s previous estimates had pushed the projection down to 5%. On Friday, the NSO also revised downward its estimates for the first three quarters, and pegged its growth estimate for the full year at 4.2%. GDP expanded by 6.1% in 2018-19.