Positive growth in agriculture sector
The Royal Monetary Authority released the annual report for the 2013/2014 last week The reports states that the economy has continued to slow down with real GDP growth at 2.1 percent in 2013. Growth in most sectors was sluggish with a few key sectors even declining in 2013. In particular, the manufacturing, construction and general government sectors displayed negative real growth in the year.
Sectors that performed relatively well and contributed to the overall growth in 2013 were mining and quarrying; electricity and water; and agriculture including livestock and forestry. In terms of the broad sector-wise performance of the economy, growth in 2013 was driven by the secondary sector, with a contribution of 1.5 percentage points to the real GDP growth of 2.1 percent. The contribution of the secondary sector however, has fallen from 2.9 percentage points in 2012. Similarly the contribution of the tertiary sector has been steadily declining since 2011 while the contribution of the primary sector increased from 0.3 to 0.4 percentage point
In nominal terms, GDP increased by 7.1 percent to Nu.104.4 billion in 2013 from Nu.97.5 billion in 2012. In terms of the sector shares in nominal GDP, the agriculture, Livestock and forestry sector, the construction sector, the electricity and water sector, the general government sector including the community, social and personal services, and the transport, storage and communication sector have been the five largest sectors for the last decade.
The primary sector consisting of crops, livestock, and forestry and logging activities recorded real growth of 2.9 percent in 2013. The sector’s share in nominal GDP increased by 0.2 percentage points to 16.2 percent in 2013. Improved growth in the sector was mainly on account of growth in the crops subsector followed by growth in livestock. Growth in forestry and logging on the other hand, declined from 3.3 percent to 1.6 percent in 2013.
The share of the secondary sector to nominal GDP increased to 42.3 percent in 2013 from 41.6 percent in 2012. However, the annual real growth of the secondary sector has fallen to 3.5 percent in 2013 compared to 6.8 percent in 2012.
Within the sector, there was a rebound in the mining and quarrying subsector and the electricity and water sub-sector from negative growths in 2012. On the other hand, the manufacturing and construction sub-sectors both recorded negative growth of 7.2 and 2.1 percent, respectively, in 2013.
With a positive growth in the production of crops and livestock despite the sluggish growth of the economy, the famers seem to be doing a good job.
As we embark on the new journey ahead the agriculture sector seems to be contributing their share in the growth of our economy.