Asia Regional Integration Center

GDP contracted in 2020 by an estimated 7.9%, reversing the modest 1.8% expansion in 2019. The economy had to contend with the effects of the pandemic, a domestic political crisis, and the delayed passing of the 2020 budget. Private consumption fell by 3.1%, while private investment dropped by 39.0%. Public capital spending was down by about 50%. Public consumption grew marginally by 1.0%, due a pandemic stimulus package. Nonetheless, the economy is expected to grow by 3.4% in 2021 and 4.3% in 2022. Government spending is expected to increase 30% over the next 3 years under an Economic Recovery Plan, financed primarily by the Petroleum Fund.