“Overall, for the second quarter of 2013, GDP grew 2.1% (year-on-year) compared to 1.6% recorded in the previous quarter. The country’s non energy sector continued to show positive momentum, recording yet another quarter of expansion during the second quarter of 2013. This is the ninth consecutive quarter of expansion. Year-on-year, the non-energy sector grew 2.4% in the second quarter of 2013–the same rate as the previous three months. The top three best performing sectors were finance (+5.3%), manufacturing (+3.8%) and construction (+3.5%). The energy sector posted growth of 1.6% in the second quarter of 2013, even as the petrochemicals subsector recorded a significant contraction of 9.3%.

The Ministry of Finance and the Economy estimated that GDP would expand at a rate of 1.6% for the full year 2013, supported by the non-energy sector. This projection is in line with the International Monetary Fund (IMF), which also forecast growth of 1.6% in 2013, with projected expansion by 2.3% in 2014. The performance is likely to be driven by the non-energy sector, particularly in the construction, finance and distribution sectors.

Inflation for the 12 months to October 2013 decelerated to 2.7% from 3% in September, mainly due to the slowdown in core inflation which stood at 1.9% in October from 2.9% in September.

As at the end of March 2013, the country’s total public sector debt stood at 54.3% of GDP–a decline from the 57% of GDP recorded at the end of September 2012. Contingent liabilities represented 17.4% of GDP at the end of March 2013, while external debt of central government was at a stable 6.3% of GDP.”

Nyree D. Alfonso
Chairperson First Citizens Group