Rate of conversion industries grows while, Agriculture sector growth rate recedes [Archives:2004/737/Business & Economy]

May 13 2004

The sector of converting industries has achieved stability in the proportion of its development at a rate of 5% from the Gross Domestic Product at a time the goods production sector has achieved an increasing growth reaching 3.9% in 2003 as compared to 2.2% in 2002, due to increased growth of agriculture production from 0.8% to 3.1%.
Depending on figure issued by the ministry of planning and international cooperation, the non-oil goods production sectors have contributed to structure of the GDP by 25%.
The ministry reported that the sector of conversion industries is depended on for effecting a qualitative shift in the structure of Yemeni economy and that could only be achieved after surmounting hindrances of investment and restructuring some supportive sectors for the growth of the industrial sector.
Contribution of the sector of building and construction proportion of contribution to the GDP in 2003 amounted to more than 4% and growth rate of 5.4%.
Government investment spending has expanded and resulted in a positive effect on the infrastructure of the construction sector against a steep drop in the private sector spending and that was owing to treasury bonds, deposit certificates, an increase in price rates of building materials and abstention of banks from investment in the area of housing.
Those indicators explain that the construction sector is in need to pursuing suitable economic policies contributing to its development, because of its importance in the structure of the GDP. The ministry of planning figure confirmed that extraction industries contribution to the GDP was between29 to 36% of the GDP of which oil constituted a rate of 90%.
To sum it up, the value of GDP of 2003 amounted in the current prices to 11.35 billion dollars where the agriculture sector and forests had the bigger share and that was by 14%, registering a retreat by 1%.