Household final consumption expenditure saw a sharp decline in its rate of change from a 2.6% increase in Q2-2019 to a 21.2% decline during the same period of 2020, the HCP said in a briefing note on the national economic situation in Q2 2020.

The gross fixed capital formation posted a sharp decline from 2.2% in the second quarter of 2019 to -17.4%, adds HCP, noting that, on the other hand, final consumption by general government posted an increase of 5.8% instead of 4%, with a contribution to growth of 1.1 points instead of 0.8 points.

Foreign trade in goods and services made a negative contribution to growth, standing at -0.6 points instead of -0.8 points in the same quarter of the previous year, the same source reported.

Imports fell by 25.7% instead of an increase of 4% last year, while exports of goods and services fell more sharply with a drop of 32.9% in Q2 2020 instead against a 3% increase a year before.

With the sharp decline in GDP at current prices of 15.6% and the 23.3% increase in the rate of growth of net income received from the rest of the world, gross national disposable income fell by 14% in Q2-2020 against a 4.3% increase in 2019.

Given the 14% decline in national final consumption in value terms instead of the 3.2% increase recorded a year earlier, national savings stood at 29% of GDP instead of 28.4%, the HCP noted.

Gross investment (gross fixed capital formation and change in inventories) amounted to 30.5% of GDP instead of 33% during the same quarter of the previous year.

The note also shows that the financing need of the national economy has thus decreased compared to Q2 2019 going from 4.6% of GDP to 1.6%.