Business

A Governmental Report Expected to Increase the Non-oil Sectors Contribution in GDP During the Next Two Years

A recent government report anticipated the increase of non-oil economic sectors in the composition of the real GDP for the period of 2010-2012 from 84.2% in 2010 to about 85.6% in 2012.

The same report forecast the decline of the oil and gas sector in the structure of real GDP by about 1.4 percentage points over the same period to reach 14.4% in 2012.

The report stated that services will continue as the primary sector in terms of contributing to the structure of the GDP and accounts for up to 60.9% of the domestic gross of the average period of 2010-2012, followed by the agriculture, forestry, and fishing sector in second place, whose contribution is 12.4% on average.

The industrial sector comes in third and includes extractive industries —  excepting the oil and gas sectors – manufacturing, electricity, water, building and construction; it increased by an average of 11.4% during the same period.

The deterioration in the industrial sector is due to the structural constraints and emerging issues represented in the deterioration of the private investment because of the slow recovery of the investment and the persistence of traditional methods of production.

In addition, poor performance is linked to the weak competitiveness for products, the difficulties of export and marketing and the negligence of scientific research and industrial development.

The report noted that the overall economy will witness structural developments in the coming years 2010-2012, represented in the increased contribution of service sector activities, with the rise in importance of trade, restaurants, and hotels activities, in addition to the importance of the activities of transport and storage.

The government aims during the coming period to restructure and improve the performance of the local private sector according to modern standards, since it represents a cornerstone of economic and social development.

Also it aims at raising the efficiency of the comparative advantages of the national economy and support the more potentially lucrative economic activities for the sake of general economic growth.