Kenya: GDP expands at faster rate in Q3; healthy expansion in most sectors
December 30, 2015
In the third quarter of 2015, GDP increased 5.8% in annual terms, which marked an acceleration over Q2’s 5.6% and was the highest reading since Q2 2014. Compared to the previous quarter, GDP increased a seasonally-adjusted 1.4% in Q3 (Q2: +2.2% quarter-on-quarter).
Q3’s pick-up was driven by faster growth among 11 of the 16 sub-components. Double-digit expansions were tallied by construction, mining and quarrying, electricity and water supply as well as financial services. Other sectors that accelerated were agriculture, wholesale and retail sales, transport, information and communication, real estate and education. By contrast, public administration, professional services and healthcare slowed compared to Q2. Noteworthy is that the accommodation and restaurants sector remained the only sector in decline, recording the seventh consecutive drop, with the pace of contraction accelerating moderately compared to Q2.