Asia Regional Integration Center

The economy contracted by 4.3% in 2020 due to the COVID-19 pandemic and lower oil production, reversing 2019 growth of 2.5%. On the supply side, industry fell by 5.6% as mining declined by 7.4%. Construction fell by 8.7% in 2020, worse than the 2.8% decline in 2019. Manufacturing grew by 10.4%. Agriculture slowed to 1.9% growth after rising by 7.3% in 2019. Inflation inched up to 2.8% from 2.6% in 2019. On the demand side, private consumption and investment fell while net exports plunged due to lower hydrocarbon exports. Fiscal stimulus widened the budget deficit to 2.4% of GDP from 0.3% in 2019. With most banks well-capitalized and inflation within its target band, monetary policy remained accommodative. As domestic and external demand improves and consumer confidence returns, the economy is expected to grow by 1.9% in 2021 and 2.5% in 2022.