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Value of local goods, services goes down

Value of local goods, services goes down

The National Bureau of Statistics (NBS) report said the decrease is worse compared to 6.7 per cent recorded in the corresponding period of the previous year. Normally, QGDP measures the value of all goods and services produced within a country out of its economic activities. 

“In absolute terms, the QGDP for the quarter was 5,265,049m/- in 2011 compared to 4,946,678m/- in the previous period,” stated the report.  During the period under review, there have been quite a number of challenges that had negative impact on the economy, especially on the manufacturing and electricity activities, stated the report. 

Some of the challenges included power outages, escalating prices of fuel and the depreciation of the shilling against major world currencies. For example, the growth rate of electricity declined to negative 9.7 per cent in the third quarter of 2011 compared to a growth rate of 13 per cent in the similar period of the previous year, the report said. 

The decline in growth, according to the report, was attributed to poor electricity generation from hydro power sources as well as from gas due to major repairs and maintenance of the turbines. One of the impacts of power outages is the decline of activity in the manufacturing sector to 8.3 per cent in the third quarter of 2011 compared to 9 per cent in the corresponding quarter of the preceding year, indicating a 0.7 per cent down.

Escalating fuel prices also contributed to the fall of manufacturing activities, the report said. The growth rate for agricultural activity like crops, livestock and forestry declined slightly to 5.8 per cent in the third quarter of 2011 compared to 6.3 recorded in the similar period of the previous year. According to the report, the performance was on account of favourable rainfall in the regions that are potential for agriculture during the period under review.

Likewise, the construction sector growth rate in the same period decreased to 8 per cent compared to 13.2 in the corresponding quarter of 2010. Mining and quarrying activities, according to the NBS report, recorded a growth rate of 1.5 per cent in the third quarter last year compared to a negative growth rate of 12.3 per cent in the corresponding third quarter of 2010, said the report.  The growth was influenced by increased production of gold as a result of favourable prices in the world market in the period under review.

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Mwandishi: SEBASTIAN MRINDOKO

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