Gross Domestic Product and Balance of Payments Second Quarter 2015

20152gdp reportThe country’s real Gross Domestic Product (GDP) is estimated to have expanded by 5.5 percent during the second quarter of 2015 compared to 6.0 per cent in the same quarter of 2014. The quarter was characterized by a fairly stable macroeconomic environment supported by a slowdown in inflation and decline in interest rates. During the review period, the country experienced good rains that led to improved agricultural activities despite suppressed demand of key agricultural exports.
The Kenyan shilling depreciated significantly against the US dollar, held firm against the Sterling Pound but appreciated significantly against all the other major trading currencies. On average, inflation eased downward to 6.99 per cent during the review period compared to 7.03 per cent in the same period of 2014. The slowdown in inflation was mainly occasioned by; lower prices of fuel oils; electricity; transport; communication; and housing. Internationally, the price of Murban Adnoc crude oil averaged at 63 US$ per barrel during the quarter under review compared to an average of 110 US$ per barrel during the same quarter in 2014.
Domestically, the pump price of light diesel dropped significantly to average at KSh 80.0 from KSh 104.4 while the cost of electricity also dropped albeit by a lower margin over the same period. The decrease in the international oil prices was primarily driven by increased global production especially from shale oil. Increased production of hydro and geothermal electricity coupled with a reduction in generation of thermal electricity also contributed to the decline in energy prices. Download Gross Domestic Product (GDP) Second Quarter 2015