Budget sector performance

Finance Minister

Services sector recorded an average growth rate of 5.4 percent in first half of 2022.

According to the 2023 budget, in the first half of 2022, the services sector recorded an average growth rate of 5.4 percent, compared with 8 percent for the same period in the previous year.

Under services, the highest growth was recorded by the Information and Communication subsector with a growth of 20.3%.

The impressive growth can be attributed to the increasing use of ICT as the world is heavily driven by technology.

On the other hand the Professional, Administrative and Support Service activities was the worst performing subsector recording a negative growth of 11.5 percent.

Meanwhile Real Estate also contracted by 5%. A negative growth of the real estate subsector has major implications for the economy because of the wide variety of people employed in that space

Another subsector worthy of note is Hotels and Restaurants which has suffered repeated negative growth since 2020 because of Covid.

In the first of this year however the hotels and restaurant subsector recorded a growth of 4.7. The positive growth is a significant turnaround compared to negative 1 percent recorded for the same period last year and negative 37 percent for the year 2020 during the height of the covid pandemic.

The services sector however remains the largest contributor to the country’s GDP, accounting for 46.2percent of the economy.

READ ALSO:  We recovered over 80% loans after seizing properties of defaulters - MASLOC CEO