Services sector to expand 6.2 per cent next year, says Finance Ministry

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NST2020budget:“The sector is projected to expand 6.2 per cent in 2020 with most subsectors expanding at the same momentum, while trade and manufacturing-related services are expected to improve marginally

In its 2020 Economic Outlook report, the ministry said the sector’s growth this year, constituting about 58 per cent of gross domestic product , would be supported primarily by the wholesale and retail trade; finance and insurance; information and communication; and food and beverages and accommodation subsectors.

It said the finance and insurance subsector was expected to grow 4.8 per cent this year mainly attributed to higher growth in financial intermediation services indirectly measured and fee-based income amid low interest rates. The ministry said the information and communication subsector is expected to grow 6.7 per cent this year, attributed to telecommunications and computer services, while the introduction of the fifth-generation cellular network was anticipated to drive the growth of the subsector to 6.9 per cent next year.

“Furthermore, the enhancement of the eligibility criteria of the Fund for Affordable Homes in September 2019 to further assist first-time home buyers is expected to support the growth of the subsector,” the ministry said.

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