The way the Gross Domestic Product (GDP) is growing indicates that the economy is increasingly relying on services, while agriculture and industry continue to make a negative contribution to the economy's expansion, Monitor reported on Monday.

The latest data from INSTAT show that the economy grew by 3.75% in the third quarter compared to the same period last year, while the agricultural sector fell by -1.73% in the same period and industry fell by -4.7%.

Agriculture has been showing a continuous decline in value added since 2021, reflecting structural problems related to land fragmentation, low productivity, lack of subsidies, and cost pressures.

At the same time, the processing industry is closing in on a decline for the third consecutive year. Both manufacturing sectors, such as agriculture and industry, have had a significant weight in employment and the total economy.

Both agriculture and industry together contributed only 23% of GDP in 2024, from 27.3%, which was their share in 2019.

This performance shows that a strengthening of production capacities is not accompanying economic expansion. The extractive and processing industry is being affected by both weak external demand and higher domestic costs, as well as the lack of labor.

Meanwhile, economic growth is being kept alive mainly by service sectors, such as public administration, professional and financial activities, and some segments of trade and tourism-related services.

According to experts, this makes growth less balanced and more sensitive to shocks, as it lacks support from sectors that create long-term added value and are the basis of exports.

The latest GDP data show that growth is based on fragile foundations. The decline in agriculture and the weakening of industry raise questions about the quality of growth and the ability of the economy to generate sustainable growth and productive employment.

The decline in production also means that the economy is losing its ability to compete in foreign markets. Exports have fallen by about 7% annually in the 11 months and remain concentrated in low-value-added products, making growth more dependent on imports and external flows, such as remittances or tourism. This deepens the trade deficit and makes the economy more exposed to external shocks.

On the other hand, the manufacturing sector usually offers more stable jobs with the potential for skill growth. As production declines, employment shifts to more informal or low-productivity activities.