ECONOMY UP ONLY 2%

MBABANE – The country’s economy has only grown by 0.3 per cent in the fourth quarter of 2020, giving an annualised growth rate of two per cent.

This is as per figures sourced from the Central Statistical Office under the Ministry of Economic Planning and Development. The increased real quarterly Gross Domestic Product (GDP) follows a revised increase of 1.7 per cent in the third quarter of 2020. The year-on-year (Y-Y) seasonally adjusted 2020 quarter four figures show an increase of two per cent compared to a decline of -1.8 in the previous year. The Y-Y growth measures the rate of change of corresponding quarters in subsequent years. The quarter to quarter (Q-Q) seasonally adjusted growth rate which measures the change from subsequent quarters shows an increase of 0.3 per cent in 2020 quarter four following an increase of 10.4 in 2020 quarter three.

The report revealed that the primary sector which contributed 10 per cent to total industries in the fourth quarter of 2020 showed an increase of 5.2 per year-on year. The realised growth was said to be due to an increase in growing of crops and forestry. The secondary sector which contributed 36 per cent to total industries indicated a decline of 0.8 per cent in 2020 quarter four year-on-year. The decline in this sector is mainly due to a fall in construction by 17 per cent.

Decline

In essence, the secondary sector was the most affected in the past year, with a decline of up to 25.6 per cent in the second quarter of 2020. Industries that included construction were frozen at some point to curtail the spread of COVID-19. The tertiary sector, on the other hand, which contributed 54 per cent of total industries showed an overall increase of 3.9 per cent in 2020 quarter four year-on-year. The increase was said to be due to improvements in the following industries; information and communication (100 per cent), financial and insurance activities (15 per cent); human health and social work activities (five per cent).

Some analysts told this publication that a rebound was expected this year, as the coronavirus lockdown restrictions had since been eased. However, they were quick to highlight that the risk of resurgence in infections and reimposition of tighter restrictions remained, as the country lagged behind in launching its vaccination campaign. The government is yet to step up its vaccination programme, which was launched early this month with the administering of AstraZeneca doses to priority groups.

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