Govt projects economy to contract by 0.38% in FY2019-20
ISLAMABAD: The government on Monday estimated that the Gross Domestic Product (GDP) of the country would remain negative 0.38 percent in Fiscal Year 2019-20.
The provisional growth estimation of GDP is based upon growth estimates of the agricultural, industrial and services sectors at 2.67 percent, -2.64 percent and 0.59 percent respectively.
The GDP growth projection was made during the 102nd meeting of the National Accounts Committee held here under the Chairmanship of Secretary Ministry of Planning, Development and Special Initiatives, Zafar Hassan, said a press release.
The meeting noted that smart lockdown policy adopted by the government minimized the impact on economic growth compared to full lockdown situation.
The provisional estimates of the GDP and Gross Fixed Capital Formation (GFCF) for the year 2019-20 were presented on the basis of latest data of 6-9 months which were annualized by incorporating the impact of Covid-19 for the final quarter.
The meeting was informed that the agriculture sector grew by 2.67 percent. Important crops during the year recorded growth of 2.90 percent.
This growth has been recorded due to increase in production of wheat, rice and maize at 2.45 percent, 2.89 percent and 6.01 percent respectively. However, cotton, and sugarcane crops witnessed negative growth of 6.92 percent and 0.44 percent respectively.
Other crops (onion, potato, vegetables etc) showed positive growth of 4.57 percent mainly because of increase in production of pulses, oil seeds and vegetables.
Similarly, livestock sector registered a growth of 2.58 percent which is deviation from its historical growth primarily because of shrinkage in demand for dairy and poultry. Forestry also witnessed a growth of 2.29 percent due to increase in production of timber. - APP