Strong Q113 Growth A Sign Of Things To Come
BMI View: Having grown by a robust 5.2% y-o-y during the first quarter of 2013, the Kenyan economy is set to expand by 5.7% for the year as whole with private and public investment and consumption expected to perform strongly . We are expecting growth to accelerate to over 6.0% in 2014 provided that there are no external shocks such as a recurrence of drought.
The Kenyan economy defied concerns that it would see an election-related slowdown in the first quarter of 2013 (Q113) , growing by 5.2% in year-on-year terms , the fastest rate of expansion since Q411.
The strong performance was largely the result of robust growth for the agriculture sector, which makes up around one fifth of GDP and which expanded by 8.3% y-o-y in Q113 thanks to favourable weather conditions. The economy was not completely unaffected by the elections with the 'hotels and restaurants' component contracting by 15.8% as foreign tourists stayed away during the quarter.
|Strong Growth In Q113|
|Kenya - Quarterly GDP Growth, % y-o-y|