The economy contracted by 3.3% in 2020 as it was battered by the COVID-19 pandemic. Lockdowns crippled business activity and trade. International travel was restricted for most of 2020, severely hampering business travel and inward investment. It also delayed major infrastructure projects. The economy is forecast to grow by 2.5% in 2021 and 3.0% in 2022 as the economy slowly recovers. However, the economic environment will remain challenging, with real GDP not expected to match 2019 levels until 2022. A weak business and investment climate will likely persist, given continuing foreign exchange shortages, a government critical of foreign investment, and the continuing COVID-19 pandemic.
|Headline Inflation Rate 1||2.9 (Dec19)||4.8|
|Merchandise Export Growth 1||-4.3 (Feb21)||-4.3||-13.1|
|Exchange Rate Index 2||87.8 (May21)||87.8||88.4|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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