Economic performance figures for 2010 to be released today

By James Anyanzwa

Just how did the economy perform last year? That is the question lingering in the minds of many people, but whose answer will be known today when the Government releases the overall annual economic performance statistics for the year 2010.

The event will be presided over by the Planning, National Development and Vision 2030 Minister, Wycliffe Oparanya, and graced by members of the business community, Government officials, civil society groups and the development partners.

And if the preliminary figures for the first nine months of 2010 were anything to go by, then Kenya’s economic performance for the full year could, in fact, be better than earlier anticipated.

Temporary reprieve

This might play out to be a temporary reprieve for Kenyan households and businesses currently weighed down by increased cost of living and a grim economic outlook for 2011. High fuel and food prices have pushed consumers and firms cut spending, with economic frailty threatening job creation.

The average growth rate for the Kenyan economy during the first three quarters of 2010 rose to 5.4 per cent — compared to 2.1 per cent and 2.3 per cent for similar periods in 2008 and 2009 respectively — showing the economy is on the mend after being hit by major shocks in the form of drought, global financial crisis and post election violence in 2008 and 2009.The economy grew by 2.6 per cent in 2009 from a revised 1.7 per cent a year before, boosted by growth in tourism, construction and communications.

The economy showed signs of recovery from a slump prompted by the recovery of the global economy and Treasury’s implementation of the fiscal stimulus package, which was crafted to drive up consumer spending, as employment opportunities created in public projects boosted incomes.

Kenya’s economic growth was reduced dramatically by a bloody post-election crisis in early 2008, and a prolonged drought and the global economic crisis compounded the effects. Agriculture accounts for roughly 25 per cent of the country’s gross domestic product (GDP).