Kenya's Economic Rebound Persists With 9.9% Third-Quarter Growth
(Bloomberg) -- Kenya’s economy continued its rebound in the third quarter, expanding 9.9% from a year earlier, underpinned by recovering activity in industries across the board.
The growth rate decelerated from a revised 11.9% in the previous three months, according to the Kenya National Bureau of Statistics. Still, it was better than the central bank’s forecast of 8.3% for the third quarter.
East Africa’s biggest economy is recovering from its biggest contraction in almost three decades as authorities ease virus restrictions that hurt most industries, especially education and tourism. The central bank estimates an expansion of 6.4% for the year, higher than the 5% anticipated by the World Bank.
Agriculture was the biggest drag on output even after the statistics agency slashed its weighting on gross domestic product from about a third to a fifth. Farm activity still contributes more than any other industry and extended the first half’s contraction into the third quarter by shrinking 1.8%. The world’s top exporter of black tea and the largest supplier of cut flowers in Europe is experiencing a drought in the north that could continue to weigh on growth in coming months.
The education sector recorded the highest rate of growth, expanding almost 65%, followed by mining and quarrying at 25%. Activity in the accommodation and restaurant sector, which is a good measure of the tourism industry’s performance, also grew by about 25%, compared with a 63% contraction in the same period a year earlier.
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