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2014 National Accounts Final Report

Economic Growth

The 2014 domestic economy reflected a real growth of 2.3 per cent; the economy grew by 0.3 percentage point compare to 2 per cent growth in 2013. It continues to expand with a slight increase in 2014 following the positive trends since 2012.

Industrial Sector

The industry sector, which is relatively small, is made up of these sub-groups; quarry; manufacturing; electricity and water and construction. It continued to expand following the positive performance in 2013. This sector is driven by construction, though it grew by 9.7 per cent and the overall contribution to total GDP is at least 7.5 per cent compared to the two other sectors agriculture and services. The two main drivers of industry construction and manufacturing have recorded positive performance in 2014. Construction grew by 9.7 per cent, a normal increase following three consecutive period of negative growth and manufacturing grew by 0.8 per cent compare to the decline recorded in 2013. The construction value added stood at VT 1,710 million in real terms, a level higher than the normal activities recorded in 2011 and 2012

Service Sector

The service sector continued to be the dominant sector of the economy. In real term, it contributed to 65 per cent of the total GDP in 2014. The positive growth of the sector was highly dependent on the trend in tourist arrivals and expenditures and activities of the Financial Centre. The contribution of the government or public sector to total GDP increased consistently since the implementation of the comprehensive reform programme by narrowing the eleven local governments to six provincial governments. The 2.4 per cent growth reflected a positive performance from all major sub-groups except for transport, which decline by 5.9 per cent, followed by professional, scientific and technical services which decrease by 1.2 per cent, and finance and insurance by 0.3 per cent respectively.

Agriculture Sector

Agriculture continues to expand following a strong growth of 6 per cent in 2011 which was recorded as the highest level achieved over some time. The agriculture industry contributed 22 per cent of the total GDP at constant Price (see Figure 1). The consistent improvement in agriculture value added
were mainly driven by crop productions which registered a growth of 3.5 per cent (see Table 15). Therefore over 50 per cent of agriculture productions are informal activities which are driven by 75 per cent of the rural population.