Staff Reporter<\/p>\n\n\n\n
ECONOMIC growth is projected to slow to 3.3% this year, primarily due to reduced output in the secondary industries, stemming from an anticipated contraction in the manufacturing sector.<\/p>\n\n\n\n
\u201cThe economic growth is expected to slow down to 3.3% in 2025 compared to the initial estimates of 4.5% in the 2025\/26 main budget. The downward revision is due to lower output in the secondary industries (slowing to 1.9% from 3% in 2024), owing to an expected contraction in the manufacturing sector,\u201d the Minister of Finance, Ericah Shafudah said.<\/p>\n\n\n\n
Shafudah made these remarks in Parliament while delivering the Mid-Year Budget Review Statement for the 2025\u20132026 Financial Year. She noted that although domestic economic activity expanded during the first six months of 2025, the pace was slower than in 2024, weighed down by declines in the production of diamonds, zinc concentrate, cement, and blister copper.<\/p>\n\n\n\n
She highlighted that within the secondary industry, electricity generation recorded an increase, while the manufacturing sector contracted, mainly due to lower diamond processing, and reduced production of cement and blister copper.<\/p>\n\n\n\n
However, she added that in the primary industry, overall mineral output increased, and it is estimated to grow 2.5% in 2025, relative to 1.8% in 2024, supported by increased activities in the uranium mining and other mining and quarrying subsectors.<\/p>\n\n\n\n
\u201cIn the primary industry, overall mineral output increased, driven by a significant increase in uranium production as well as an increase in the production of gold. Meanwhile, activity in the agricultural sector diverged, as livestock marketing decreased, whereas local crop production rose amid investment in irrigation schemes as well as better rainfall received,\u201d Shafudah said.<\/p>\n\n\n\n
The minister also reported that the tertiary industry continued on a positive trajectory, driven by strong performance in the tourism, wholesale and retail trade, transport, and communication sectors. However, she said, growth in the tertiary industry is expected to moderate to 3.7% in 2025, compared to 4.9% in 2024.<\/p>\n\n\n\n
\u201cOverall, growth has been revised downwards for the remainder of the medium-term expenditure framework period, projected at an average economic growth of 3.6 percent, in contrast to a projected MTEF growth average of 4.3% in the 2025\/2026,\u201d the minister added.<\/p>\n","protected":false},"excerpt":{"rendered":"
Staff Reporter ECONOMIC growth is projected to slow to 3.3% this year, primarily due to reduced output in the secondary industries, stemming from an anticipated contraction in the manufacturing sector. \u201cThe economic growth is expected to slow down to 3.3% in 2025 compared to the initial estimates of 4.5% in the 2025\/26 main budget. The …<\/p>\n","protected":false},"author":10,"featured_media":384129,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":["post-384124","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news"],"yoast_head":"\n