**Table 1: Growth Rates of Aggregated Demand/Supply, by Demand Components, by decade from 1970s.**

<!-- Start of picture text --> Growth Rates of Aggregate Demand / Supply by Demand Components. By Decades.<br>Period Real GDP Goods and Imports of Services Aggregate DemandSupply / ConsumptionPrivate ConsumptionGovernment Gross Capital Formation Goods and Exports of Services<br>1970s 2.8% 10.9% 5.8% -1.1% 9.8% 11.9% 8.5%<br>1980s 1.1% 1.0% 1.0% 4.9% -2.3% -0.2% -1.0%<br>1990s 2.3% -1.2% 0.9% 4.1% -0.5% -4.8% 0.3%<br>2000s 1.8% 4.0% 2.6% 1.2% 3.9% 3.4% 5.6%<br>Source: Staff Calculations based on World Bank, WDI<br>Shares in Real Aggregate Supply of GDP and Demand Components<br>Period Real GDP Goods and Imports of Services Aggregate DemandSupply / ConsumptionPrivate ConsumptionGovernment Gross Capital Formation Goods and Exports of Services<br>1970s 64.3% 35.7% 100.0% 40.3% 9.9% 13.4% 25.4%<br>1980s 58.5% 41.5% 100.0% 45.8% 8.9% 9.9% 26.4%<br>1990s 65.2% 34.8% 100.0% 60.4% 7.8% 7.3% 22.8%<br>2000s 65.0% 35.0% 100.0% 60.5% 7.2% 7.7% 24.8%<br>Source: Staff Calculations based on World Bank, WDI<br>Contribution to Growth in Aggregate Demand / Supply by Demand Components. By Decades.<br>Period Real GDP Goods and Imports of Services Aggregate DemandSupply / ConsumptionPrivate ConsumptionGovernment Gross Capital Formation Goods and Exports of Services<br>1970s 1.8% 3.9% 5.8% -0.4% 1.0% 1.6% 2.2%<br>1980s 0.6% 0.4% 1.0% 2.2% -0.2% 0.0% -0.3%<br>1990s 1.5% -0.4% 0.9% 2.5% 0.0% -0.4% 0.1%<br>2000s 1.2% 1.4% 2.6% 0.7% 0.3% 0.3% 1.4%<br><!-- End of picture text --> _Note:_ Contributions of each variable to aggregate demand growth are computed multiplying period growth rates by period average share of the variable in total aggregate demand. _Source:_ Authors’ calculation, WDI data, World Bank **.**

# **4.4 Economic Sector Dynamics**

**Togo’s steep economic decline and subsequent stagnation since 1980 has reversed initial trends in structural transformation and has created a domestic economy increasingly dependent on primary activities, mainly at the expense of its tertiary sector (** Figure 12 and Table 2 **).** In fact, primary activities have doubled their share in value added GDP between 1980 and 2009 and represent almost 50% of value added in this latest year. Services have gone the other way, from 51% of GDP in 1980 down to 25% in 2009, while industry has maintained a relatively constant share of 25% of GDP during the same period. On one hand, value added from _primary activities_ has increased at a decreasing pace in the last three decades, boosted mainly by subsistence activities and the animal sector. On the other, traditional coffee and cotton sectors follow declining long term trends of ‐2.1% and 2.0% respectively since 1990. Among traditional primary sectors only cacao exhibits a slightly increasing trend during the period. Within the _secondary secto_ r, traditional extractive industries also show a downward trend. Since 1990, value added generated by the phosphates sector has declined at an average rate of 6.2% per year. This has been compensated by the significant increase in clinker (lime and cement) production, which has performed well at rates over 9% since 1998. Similarly, most manufacturing activities have been on an increasing trend between 1990 and 2008. Among them, the production of non‐mineral metals and metallurgic products have risen each at 12.4% and 11.2% per year during the period, elevating their share in manufacturing production from 12.4% in the former year to over 37% in the latter. Other good manufacturing sub‐sectors are chemicals, beverages, and, to a lesser degree, textiles, electricity gas and water. Value added in the _tertiary sector_ has fallen at an average pace of 0.7% per year since 1990, mainly driven by a debacle in the banking sector at a pace of 11.9% per year and in other commercial services (‐5.2%). In fact, Banking and insurance sector has declined from an already low 5.9% of tertiary GDP (and 2.6% of Value Added GDP) to an incredibly low 0.2% in 2008. The commercial sector has stagnated and, reduced its contribution to total GDP. On the flipside, transport and communication activities have performed moderately well in the last two decades growing at a 2% rate per year.

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