The economy rebounded in 2021, growing by 5.6% on strong services and manufacturing, after a 4.3% contraction in 2020. On the supply side, strong manufacturing—construction materials, pharmaceuticals, furniture, and machinery—drove industrial production up by 7.2%. Services grew by 7.8% after a 3.5% decline in 2020—as reopened borders boosted tourism (up 34.2%), transport and warehousing (16.0%), and wholesale and retail trade (5.3%). On the demand side, private consumption grew by 3.7% as quarantine restrictions eased. Investment, however, fell by 8.2% due to cuts in public spending. The budget deficit dropped to 1.1% of GDP from 2.3% in 2020 as fiscal stimulus fell. Monetary policy remains focused on price stability. Bank lending grew by a robust 17.8%. As private consumption and hydrocarbon revenues are projected to weaken, GDP should grow by 3.7% in 2022 and 2.8% in 2023.
|Headline Inflation Rate 1||12.9 (Apr22)||12.1||4.4|
|Industrial/ Manufacturing Production Growth Rate 1||-11.0 (Apr22)||-3.9||-7.5|
|Merchandise Export Growth 1||49.1 (Mar22)||49.1||147.5|
|Exchange Rate Index 2||184.0 (May22)||183.9||184.3|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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