Pos­i­tive growth in agri­cul­ture sec­tor

Bhutan Times - - Editorial -

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.

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