But the agricultural sector – the mainstay of the economy – has declined in its contribution to the GDP, manufacturing has declined, building and construction has also declined, while the wholesale and retail trade as well as the services sectors have remained almost the same as in the 1960s.
Applying the HarrodDomar model, this implies that assuming a capital-output ratio of 5.0 per cent and a savings ratio of 15.0 per cent, the economy would grow at 3.0 per cent. Of course, the savings ratio depends on the difference between the population growth rate and the growth rate of the GDP (the economy).