The government released its Mid-Year report on Saturday and coupled with the massive growth across sectors is also an increase in private sector credit.
Particularly consistent with the expansion in the non-oil productive sector, credit to the private sector rose by 7.5 per cent to $308.3 billion.
This primarily reflects expanding credit to the services sector, manufacturing sector, for real estate mortgage loans, and to households.
These increased by 8.2 percent, 26.7 percent, 3.2 percent, and 5.1 percent, to $110.3 billion, $34.2 billion, $98.6 billion, and $38.5 billion, respectively.
Growth in credit to the services sector was principally due to rises in lending for distribution, “other services”, and for professional services, while the outturn in the manufacturing sector primarily resulted from increased credit for other construction and engineering, beverage, food, and tobacco, and “other manufacturing”.
Though credit to the agriculture sector also grew by 5.4 percent to $17.4 billion, lending to the mining and quarrying sector declined by 0.3 percent to $4.2 billion.
With supportive measures in place to continue increasing economic activity, overall Gross Domestic Product (GDP) growth for 2022 is now projected at 56 per cent, and non-oil growth at 9.6 per cent.
At the end of the first six months, GDP growth stood at 36.4 percent while the non oil sectors expanded by 8.3 per cent.
Further, investments in non-oil sectors have been prioritised to ensure a strengthened and diversified non-oil productive sector
The 8.3 per cent growth in the non-oil sectors can be credited to higher individual expansions in the agriculture, forestry and fishing sector which expanded by 10. 9 per cent in the first six months of 2022.
This sector is projected for further growth at 11.9 percent despite shortfalls in rice cultivation and sugar production.
The importance of the development of the agriculture sector remains high on government’s agenda to proactively strengthen non-oil growth.
The extractive industries, including mining and quarrying, saw growth at 64. 6 per cent with a forecast of 99.9 per cent full-year growth to be supported by the petroleum and other mining industries.
The petroleum sector itself expanded by 73. 5 percent with 34. 6 million barrels of oil produced in the first half of the year.
In the manufacturing, services and construction sector, growth was also recorded at 7.6 for services and 20.4 per cent for construction. However, the manufacturing sector contracted by 11.4 per cent.
Notwithstanding, the projected growth for the manufacturing sector is 7.5 per cent by the end of the year.
Finance Minister Dr. Ashni Singh noted that upon the assumption of office by the President Irfaan Ali-led Government, the administration recognised the importance of a strong, diversified economic base and, as such, even in the early days of oil production, placed the highest level of importance on a resilient non-oil economy.
The aim was to modernise the economy’s traditional pillars and catalyze a rapidly growing and highly competitive non-oil economy.
This is evident in the nation’s non-oil economic growth at the end of the first half. The continued growth projected for 2022 builds on the 4.6 percent growth recorded last year.
