Kenya's economy contracts by 5.7 pct in Q2
Xinhua
16 Oct 2020, 03:18 GMT+10
NAIROBI, Oct. 15 (Xinhua) — Kenya's economy contracted by 5.7 percent in the second quarter of 2020 compared to an expansion of 5.3 percent in a similar period of 2019, the government statistics agency said on Thursday.
Kenya National Bureau of Statistics (KNBS) said that although Kenya was somehow spared the severe effects of the COVID-19 pandemic in the first quarter, the economy was significantly affected by the disease in the second quarter of 2020.
According to the data agency, the east African nation instituted measures aimed at containing the spread of the virus, that included restriction of movement in and out of some counties, closure of learning institutions, closure of some businesses especially those dealing in accommodation and food services as well as near cessation of international travel.
KNBS noted that the performance of most sectors of the economy was to a large extent negatively affected by measures with output considerably constrained and in some cases came to a complete halt.
The government bureau added that between April and June, most macroeconomics indicators were anchored on the need to cushion the economy from the effects of the COVID-19 pandemic.
It said that one of the sectors that cushioned Kenya from greater economic contractions was the agriculture, forestry and fishing activities which recorded a growth of 6.4 percent in the second quarter of 2020 compared to 2.9 percent growth in the corresponding quarter of 2019.
KNBS added that there was a notable increase in tea production, sugar cane deliveries, milk intake and fruit exports but a decline in exports of coffee, cut flowers and vegetables.
According to the data agency, the manufacturing sector reported a contraction of 3.9 percent in the second quarter of 2020 compared to an expansion of 4.0 percent in the same period of 2019.
The bureau noted that the construction sector recorded a slowed growth of 3.9 percent in the second quarter of 2020 compared to 7.2 percent growth in the second quarter of last year.
KNBS observed that the transportation and storage sector is estimated to have contracted by 11.6 percent in the period under review compared to 7.6 percent growth in the corresponding quarter of 2019 due to restriction of movements.
The statistics agency said that freight movement through Standard Gauge Railway (SGR) rose by 3.9 percent between April and June to stand at 1,053,000 tons.
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