After surging by 7.6% in 2019, the economy contracted for the first time in 11 years in 2020, by 7.6%, due to the COVID-19 pandemic and cross-border political events. Industry, excluding construction, contracted by 1.5% as declines in manufacturing, electricity generation, and utilities for water and waste management outweighed a 12.0% rise in mining and quarrying. Services plunged by 9.2% reflecting double-digit declines in trade, recreation, accommodation, transportation, and food services. On the demand side, private consumption, which constitutes 80% of GDP, decreased by 14.0% as business closures and reduced income and remittances cut household spending. However, public consumption grew by 15.6% as the government provided stimulus to mitigate the COVID-19 impact and support economic activity. Average inflation eased from 1.4% in 2019 to 1.2% in 2020, reflecting weaker external and domestic demand.
|Headline Inflation Rate 1||8.8 (Aug21)||8.2||1.8|
|Industrial/ Manufacturing Production Growth Rate 1||-5.2 (Aug21)||1.7||-1.2|
|Merchandise Export Growth 1||13.6 (Aug21)||13.6||17.7|
|Exchange Rate Index 2||108.3 (Sep21)||108.9||107.8|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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