Kenya Quarterly Gross Domestic Product First Quarter 2018

Abstract

Provisional estimates of Gross Domestic Product (GDP) indicate that the economy expanded by 5.7 per cent during the first quarter of 2018 compared to 4.8 per cent in a similar quarter of 2017. The significant acceleration in growth 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. On the other hand, Financial and Insurance; Transportation and Storage; Construction; Electricity Supply; and Mining and Quarrying recorded marked slowdown in the growth. Growth of activities in the Information and Communication was robust while Accommodation and Restaurants slowed significantly but remained relatively strong.

Key macroeconomic indicators were largely favourable to growth during the review period. Inflation averaged at 4.49 per cent during the review quarter compared to an average of 8.77 per cent experienced during the same period of 2017. The slowdown in inflation was mainly influenced by lower food prices during the period under review. In the money market, the Kenya Shilling recorded mixed performance against its major trading currencies. The most noticeable was a significant weakening of the Shilling against the Euro and the Pound Sterling.