The economic activities which registered significant growth in the fourth quarter year-over-year are construction at 6.7 per cent, trade, hotels, transport and communication at 5.5 per cent, financing, insurance, real estate and business services at 9.4 per cent, and community, social and personal services at 7.5 per cent. The growth rates in agriculture, forestry & fishing is estimated at 1.2 per cent, mining and quarrying at 1.9 per cent, manufacturingat 0.8 per cent, electricity, gas and water supply at 3.4 per cent in this period.
According to the latest estimates available on the Index of Industrial Production (IIP), the index of mining, manufacturing and electricity, registered growth rates of 1.8 per cent, 0.2 per cent and 2.8 per cent, respectively in Q3 2012, as compared to the growth rates of (-) 4.1 per cent, 3.4 per cent and 10.5 per cent in these industries in Q3 2011. The key indicators of construction sector, namely, cement and consumption of finished steel registered growth rates of 5.1 per cent and 2.3 per cent, respectively.
Exports have slowed down as a result of Europe’s sovereign debt crisis that has slowed exports. Investment has declined as the central bank has maintained high interest rates to curb inflationary pressures.
Amid fears of a credit downgrade, the government's poor fiscal position has not allowed for expansive fiscal policy to stimulate the economy towards the target growth rate.