Investments in infrastructure rebounded, last year, following three years of the COVID-19 pandemic-imposed disruptions. According to the National Statistics Bureau’s latest National Accounts Statistics, the country’s gross domestic capital formation, which is the investments in infrastructure, grew by 28.84 per cent, last year. However, despite the boom in the construction sector, the report shows that the trade deficit has widened to Nu 78.2bn, a whopping 99.28 per cent increase from 2021.
The gross domestic capital formation or GDCF grew from 19.96 per cent in 2021 to 28.8 per cent, last year.
This means that investments in building or expanding things like factories, machinery, infrastructure like roads and bridges, and other long-lasting assets increased by 9.41 per cent.
According to the National Accounts Statistics, the GDCF, which accounts for 55.78 per cent of the gross domestic product of the country, contributed significantly to GDP growth, last year.
The country’s GDP for 2022 is Nu 227.8bn.
The report also states that within the GDCF, the construction sector grew by 9.41 percentage points. 2022 saw Nu 47.3bn invested in the construction sector.
According to the report, the rise in construction investment was attributed to increased government expenditure on construction projects and the relaxation of pandemic protocols in the construction sector.
Meanwhile, a decline in the export of goods and services and a marked increase in the import of goods and services have led to the country’s trade deficit increasing by 99.28 per cent, last year compared to 2021.
According to the National Accounts Statistics, trade deficit for last year is Nu 78.2bn, which is an increase from Nu 39bn in 2021.
The country imported goods and services worth Nu 137bn while exporting goods and services of Nu 58.7bn, leading to a substantial increase in trade deficit.
The trade deficit accounts for 34.35 per cent of the GDP.
Sherub Dorji
