Kenya’s Lockdown and Curfew due to COVID Leads to biggest GDP Drop

When you compare the 1.6% GDP decline due to post election violence in 2018, Lockdown due to corona was 3 times worse: 5% when compared to the previous years.

The third quarter which was mostly curfew imposed by East Africa’s biggest economy had a 1.1% percent drop of the GDP. The overall increase in GDP, thanks to 1st quarter is 1%.

Agriculture, which makes up a third of GDP, grew by 6.3%, compared with a 7.3% expansion in the April-to-June period. That was helped by tea production, which increased 14% in the quarter compared with a year earlier. Kenya is the world’s biggest exporter of the black variety.

Education and accommodation and food services, which suffered the most, contracted by 42% and 58% respectively. That compares with a contraction of 56% and 83% respectively in the second quarter.

The World Bank sees Kenya’s economy rebounding to growth of 6.9% in 2021, according to the lender’s latest Global Economic Prospects report. 

Source: KNBS

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