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KENYA-ECONOMY-EXPAND
Kenya economy expands by 5.7 pct in Q1
NAIROBI, June 30, 2018 (BSS/Xinhua) – Kenya’s economy expanded by 5.7
percent during the first quarter of 2018, compared to 4.8 percent in a
similar quarter of 2017, the statistics agency said on Friday.
Zachary Mwangi, Director General of Kenya National Bureau of Statistics
(KNBS), said that the significant acceleration in the Gross Domestic Product
(GDP) was mainly attributable to improved weather conditions and a boost in
business and consumer confidence after the conclusion of general elections in
2017.
“From the supply side, growth was mainly driven by a recovery in
activities of agriculture as well as improved output in wholesale and retail
trade, manufacturing, and real estate sectors,” Mwangi said in a statement
released in Nairobi.
He noted that finance and insurance, transportation and storage,
construction, electricity supply, and mining and quarrying recorded marked
slowdown in growth.
“Growth of activities in the information and communication was robust
while accommodation and restaurants slowed significantly but remained
relatively strong,” he said.
During the quarter under review, agriculture, forestry and fishing sectors
grew by 5.2 percent compared to 1 percent in a similar period of 2017.
According to KNBS, the sector’s growth was mainly supported by favorable
weather conditions during the fourth quarter of 2017 and the onset of long
rains in early March.
Mwangi noted that largely, improved growths were recorded in most sub-
sectors except fishing, where the performance remained subdued during the
quarter under review.
The volume of tea produced rose by 10.7 percent in the first quarter of
2018 mainly attributable to ideal weather conditions that prevailed during
the quarter under review.
The volume of horticultural crop produce rose significantly during the
quarter under review except that of vegetables that declined by 2.9 percent.
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KENYA-ECONOMY-EXPAND 2 LAST NAIROBI
Specifically, the volume of cut flowers and fruits exported increased by
12.4 and 15.3 percent, respectively during the review period.
As a result, the value of the horticultural crop exports rose by 39.1
percent to stand at 440 million U.S. dollars in the quarter under review.
The manufacturing sector grew by 2.3 percent in the quarter under review
compared to a growth of 1.3 percent in a similar quarter in 2017.
Mwangi said that the improved growth was mainly supported by increased
production in the manufacture of food sub-sector.
The statistics agency said that the construction sector grew by 7.2
percent in the first three months of 2018 compared to 8.2 percent growth
realized in the first quarter of 2017.
Inflation averaged at 4.49 percent during the review quarter compared to
an average of 8.77 percent experienced during the same period of 2017.
Mwangi said that the slowdown in inflation was mainly influenced by lower
food prices during the period under review.
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