Kenya Quarterly Gross Domestic Product Second Quarter 2010

Abstract

The economy expanded by 5.4 percent in the second quarter of 2010 compared to a growth of 0.9 percent in the same period of 2009. During the quarter, the growth was mainly driven by Agriculture, Construction, Manufacturing and Financial sectors. The four sectors approximately accounted for 60 percent of the GDP growth as shown in figure 2. In general, the performance was realized in an environment of relatively low interest rates, low inflation, increased production of cheaper electricity and better prospects in agriculture sector. This continued expansion in the economy reflects gradual recovery from the past external and internal shocks. International trade indicators show marked improvement in the first half of 2010 with volume of merchandise trade increasing by 16.8 per cent. The overall balance of payments recorded a surplus of KSh 3,578 million in the first half of 2010 compared to a deficit of KSh 26,857 million in the corresponding period of 2009 while the current account recorded a surplus of KSh 15,537 million compared to a deficit of KSh 53,791 million in the similar period of 2009.