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Jun 25, 2019
GDP growth at 4.9% in Q1 2019
- GDP increased by 4.9% YoY and by 1.8% QoQ on seasonally adjusted terms in Q1 2019 – a strong growth performance especially on a quarterly basis bolstered by the expansionary fiscal policy and supportive external inflows compensating for the relatively lower credit growth. Nominal GDP went up by 7.4% YoY.
- Transport and communications (+12.7% YoY), as well as trade and repairs sector (+6.7% YoY), contributed most to the growth. At the same time, education (+15.7% YoY) and healthcare sectors (+11.4% YoY) increased substantially mainly due to the higher budget spending on education (+57.7% YoY) and healthcare (+14.4% YoY) in Q1 2019.
- Similarly, strong growth was observed in hotels and restaurants (+13.1% YoY), and real estate (+11.1% YoY). All other major sectors also increased with the exception of construction (-9.6% YoY), agriculture (-0.3% YoY), and manufacturing (-1.3% YoY).
- As expected, construction sector declined by 9.6% YoY, mostly due to the finalization of BP’s pipeline construction project. Also, the decline of construction sector was aggravated by the weakness of residential buildings construction related to the slower mortgage growth and tighter construction permit regulations. On the other hand, strong government capital expenditures partly offset the decline.