Provisional estimate of Gross Domestic Product (GDP) for the second quarter of 2019 indicate that the economy expanded by 5.6 per cent, which was lower than 6.4 per cent growth registered during the same quarter in 2018 as shown in Figure 1. A number of sectors posted impressive performances but the overall growth was curtailed mostly by a slowdown in activities of agriculture, manufacturing and transportation. Macroeconomic environment remained largely conducive for growth throughout the quarter under review.
Agriculture’s performance as well as that of electricity and water supply were mostly hampered by a delay in the onset of the long rains. Transportation industry was negatively impacted on by rise in prices of fuel. On the other hand, accommodation and food services; information and communication; wholesale and retail trade; and construction industries maintained high growths and thereby supported the overall GDP growth. Information and communication sector posted the fastest growth of 11.6 per cent during the review quarter followed by accommodation and food services and construction which recorded growths of 10.6 per cent and 7.2 per cent, respectively. Financial and insurance sector registered the most improved growth of 2.1 percentage points followed by construction sector whose growth improved by 1.8 percentage points. Quarterly Gross Domestic Product Report Second Quarter, 2019
During the second quarter of 2019, net inflows of international trade in services decreased marginally to a surplus of KSh 38.3 billion. However, diaspora remittances increased by 8.1 per cent to KSh 80.8 billion boosting the secondary income account to a surplus of KSh 149.2 billion in the second quarter of 2019.
The financial account recorded a surplus of KSh 283.7 billion in the quarter under review from a surplus of KSh 34.3 billion in the corresponding quarter of 2018 following the issuance of the third sovereign bond in the review period. Consequently, the stock of gross official reserves stood at KSh 987.8 billion as at end of June 2019 from KSh 904.8 billion as at end of June 2018, an increase of 9.2 per cent. The overall balance of payments position improved to a surplus of KSh 94.5 billion in the second quarter of 2019 from a deficit of KSh 33.6 billion in the corresponding quarter of 2018.
Quarterly Balance of Payments Second Quarter, 2019
Kenya National Bureau of Statistics hereby releases monthly Consumer Price Indices (CPI) and rates of inflation, for September, 2019. These numbers were generated from a survey of retail prices that targeted a basket of household consumption goods and services. The exercise was conducted during the second and third weeks of the month, with prices being obtained from selected retail outlets in 25 data collection zones in Nairobi and in 13 other urban centers.
The CPI decreased by 0.11 per cent from 201.78 in August 2019 to 201.57 in September 2019. The overall year on year inflation in September 2019 stood at 3.83 per cent.Consumer Price Indices and Inflation Rates for September 2019