Total exports forecast to grow by 5.2 per cent in 2018
7 July, 2017, 12:00 am
TOTAL exports are projected to grow by 5.2 per cent in 2018 led by higher contributions from re-exports, gold, sugar, mineral water and other domestic exports.
According to the 2017/2018 Budget Supplement, total exports in 2016 fell by 5.5 per cent, underpinned by declines in both re-exports and domestic exports which fell by 2.8 per cent.
This decline in re-exports was caused by lower mineral fuel re-exports, which fell because of lower global crude oil prices.
Also, the marginal decline in domestic exports was underpinned by declines in timber and sugar exports attributed to Tropical Cyclone Winston, which more than offset the increases in export of gold, mineral water and yaqona.
According to budget supplement as a percentage of gross domestic products, total exports are expected to be about 19.7 per cent in 2016.
Meanwhile total exports are expected to grow by 8.5 per cent this year, supported mainly by increases in both re-exports and total domestic exports.
As highlighted in the budget supplement the anticipated increase in re-exports is expected to be driven by higher mineral fuel re-exports resulting from an expected rebound in global crude oil prices.
The surge in total domestic exports is expected to be underpinned by export growth in molasses, mineral water exports and a subsequent turnaround in sugar exports as production recovers from damages sustained in TC Winston.
Meanwhile total exports are forecast to grow by 5.1 per cent in 2019, led by increases in all major export categories.