ECONOMY GROWS 0.6% IN 2ND QUARTER

MBABANE – The country’s economy grew by only 0.6 per cent on a quarter-on-quarter (Q-Q), seasonally adjusted basis-during the second quarter of the year.

The Q-Q seasonally adjusted growth rate measures the change from subsequent quarters shows an increase of 0.6 per cent in 2021 Q2 following an increase of 2.6  per cenrt in 2021 quarter one. The gross domestic product (GDP) figures sourced from the Ministry of Economic Planning and Development, showed that the Real quarterly GDP indicated an increase of 17.5 per cent in the second quarter of 2021 (seasonally adjusted year-on-year) following a revised increase of 5.9 per cent in the first quarter of 2021.

growth

The year-on-year growth measures the rate of change of corresponding quarters in subsequent years. According to the report, the primary sector which contributed 10 per cent to total industries in the second quarter of this year showed an increase of 24.7 per cent year-on-year. “The realised growth was due to an increase in animal production, forestry and mining,” reads the report. The secondary sector which contributed 34 per cent to total industries indicated an increase of 45.4 per cent in 2021 quarter two year-on-year. The growth in this sector is mainly due to an increase in manufacturing and construction by 50 and 17 per cent, respectively.

The tertiary sector, on the other hand, which contributed 57 per cent of total industries, showed an overall increase of 6.2 per cent in the second quarter year-on-year. This increase was due to improvements in wholesale and retail trade; repair of motor vehicles (12 per cent); transportation and storage (22 per cent); accommodation and food service activities (70 per cent); and information and communication ( seven per cent). The Quarterly National Accounts (QNA) series estimates have been compiled using the production approach, starting from 2013 quarter one to 2021 Quarter two. The quarterly time series are often characterised by considerable seasonal variations which might complicate inter-period comparability. Therefore, the GDP estimates are seasonally adjusted to make it possible to conduct an analysis of the underlying change of economic activity between periods. The Central Statistical Office (CSO) publishes the country’s gross domestic product (GDP) on quarterly and annual basis.

estimates

These estimates were compiled following the System of National Accounts (SNA 2008), which is described as a statistical framework that provides comprehensive, consistent and flexible set of macroeconomic accounts for policymaking, analysis and research purposes. The classification of individual economic activities is based on the International Standard of Industrial Classification (ISIC Rev. 4). Moreover, these estimates were compiled using the production approach which is a sum of gross value add (GVA) from the production of goods and services at market prices. Sought for reaction on the figures, an economist, on condition of anonymity, told this publication that the next quarter’s figures could show a notable decline following the damage done by looters and arsonists in key sectors of the economy that include retail and wholesale. GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy.

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