HCP: Domestic Demand to Grow by 3.5% in Q1-2021

Domestic demand grew by 3.5% in the first quarter of 2021 instead of 0.1% in the same period of the year 2020, according to the High Commission for Planning (HCP). This demand has, therefore, contributed for 3.8 points to the national economic growth instead of 0.2 points, says the HCP in an information note on the national economic situation in Q1-2021. In this regard, the final consumption expenditure of households has increased by 2.4%, contributing for 1.5 point to growth, says the same source, adding that the final consumption of public administrations has shown an increase of 6.2%, with a contribution to growth of 1.3 point. Gross investment rose by 4.1%, contributing 1 percentage point to growth. The HCP notes that foreign trade in goods and services made a negative contribution to growth, standing at 2.8 points instead of a positive contribution of 0.7 points in the same quarter of the previous year. Exports fell by 10.8% in Q1-2021 with a negative contribution to growth of 3.9 points, while imports of goods and services dropped by 2.5% (positive contribution of 1.1 points).