Kenya: GDP growth slows in Q1
July 2, 2015
In the first quarter of 2015, GDP increased 4.9% in annual terms, which marked a deceleration over the upward revised 5.5% increase observed in Q4 2014 (previously reported: +5.1% year-on-year) and the smallest expansion in a year. Compared to the previous quarter, GDP increased a seasonally-adjusted 3.8% in Q1 (Q4: +1.2% quarter-on-quarter).
Q1’s deceleration was driven by softer growth in several sub-components, including notable moderations in mining and quarrying, construction, as well as information and communication. The accommodation and restaurants category was the only category that contracted in Q1, reflecting ongoing struggles of Kenya’s important tourism sector. While the sector shrank for a fifth consecutive quarter, the pace of contraction softened in Q1. However, five of the 14 sub-sectors that compose GDP posted stronger growth in Q1 than in Q4, including agriculture, manufacturing as well as transport and storage.