STATIN Release Q1 GDP 2021

• On June 30, 2021 STATIN released its official estimate of Q1 GDP performance for 2021 which points to a 6.7% contraction which is 100 basis points higher than PIOJ’s previous 5.7% estimate. The performance of the economy was a reflection of the continued impact of the novel Coronavirus and the measures adopted to contain its spread.   The impact was predominantly felt in the Services Industries which fell by 9.9% (which is higher than PIOJ’s 8.1% estimated contraction). The Goods Producing Industries, however, grew by 2.6% (which is slightly lower than PIOJ’s 3.0% growth estimate for the industry). 
• All industries within the Services Industries declined, with the exception of the Producers of Government Services which remained relatively unchanged. Declines were recorded for: Hotels & Restaurants (55.9%), Other Services (21.9%), Transport, Storage & Communication (7.8%), Electricity & Water Supply (6.9%), Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment (5.1%), Real Estate, Renting & Business Activities (1.9%) and Finance & Insurance Services (1.2%). 
• The growth in the Goods Producing Industries was largely due to higher output levels in Construction (10.5%) and Mining & Quarrying (7.1%). However, there were declines in Agriculture, Forestry & Fishing (2.0%) and Manufacturing (1.1%). 
• When compared to the fourth quarter of 2020, total value added for the economy grew by 0.6%.  With the Q1 2021 outturn, the economy declined by 11.0% for the fiscal year 2020/2021 compared to fiscal year 2019/2020, reflecting the impact of COVID-19.

(Source: JIS)