Manufacturing activities contracted 0.2% in the first quarter of 2010 for the second time in succession disappointing analysts forecasts and signalling that recovery is far from over.
However year on year GDP - a measure of a country’s overall economic output - stroked upwards increasing 36% in March compared to a 13.8% decrease registered in the previous period under review, records from the Central Statistics Office (CSO) show. The GDP grew 4.1% pulled down by manufacturing
sector’s negative growth (-0.1%; communications (-9.6%) and social services -0.2%. Analysts had predicted that the GDP would edge slightly above 5% on buoyant diamond trade. The trend is far more worrying as CSO records show that mining remained the greatest contributor to the GDP at 9.1%, other sectors did not leverage
the sectors’ bullish growth bolstered by rallying metal prices and increasing demand for luxurious jewellery. Agriculture was the second contributor with 7.3% to the GDP and Hotels and Restaurant sector contributing 6.6% to the GDP. Real Gross Domestic Expenditure
increased 3.7% (2010:Q1) compared with a decrease of 11.7% (2009:Q3).