Kenya's economy revived back in third quarter of the year: Finance Minister

Kenya’s economy revived back in third quarter of the year: Finance Minister

Amelia Jones
2 Min Read

Kenya’s economy revived in the third quarter of the year due to relaxing measures intended to contain COVID-19’s spread as per the Finance Minister and the Statistics Office.

According to the Kenya National Bureau of Statistics (KNBS), the economy increased 9.9% a year in the third quarter, likened to a fall of 2.1 percent in the same period in 2020.

The impact of the COVID-19 epidemic, which cut visitor flows into the country, hit the economy hard in 2020.

According to the tweet of Yatini, “Economic recovery from the effects of COVID-19 pandemic resulting in the third quarter of 2021 as an effect of relieving of measures.

“This comes on the heels of an outstanding 10.1 percent real GDP growth in the second quarter.”

The statistics office stated that there was a 24.8% growth in the accommodation and food serving activities sector, including tourism. In the third quarter of 2020, the sector had shrunk by 63.4 percent.

“However, after the lifting of most of the restrictive measures in the fourth quarter of 2020, sector operations stepped up in the review period,” KNBS added.

Manufacturing, which grew by 9.5 percent, was another industry that improved its performance.

However, the statistics office said that agriculture, forestry and fishing contracted 1.8%, compared with 4.2% growth in the third quarter of 2020.

“Due to the sector’s poor performance was seen in major drops in fruit exports, cane deliveries, tea production, and coffee exports,” the report added.

In addition to that, there are unfavourable weather conditions faced by some part of the nation, which impacted negatively on the production of food crops during the review of quarter.”

In a letter to the International Monetary Fund dated Dec. 2, Yatani stated that the finance ministry expects overall economic growth of 5.9% in 2021.

President Uhuru Kenyatta lifted a night-time curfew that had been in force since March 2020 in late October in a move that anticipated to boost the economy.

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