Economic growth slows to 3.1% in Q1
First quarter growth for 2015 measured 3.1% versus the 5.6% Q1 growth of last year.
This slowdown of 2.4 percentage points translates to a massive 44.6% deceleration in the tempo of growth.
Growth slowed down due to wholesale and retail trade that recorded a decline in the real value added of 2.4%. Hotels and restaurants, and the fishing sectors recorded slow growths of 7.1% and 2.5% respectively.
“The decline in the wholesale and retail trade sector is attributed to the revenue of supermarket that declined by 2.8% in the first quarter of 2015 compared to an increase of 35.6% recorded quarter-on quarter. The slow growth in the hotels and restaurants is a result of the number of bed nights sold and room nights sold that increased by 1.1% and 0.5% respectively compared to an increase of 11.3% in bed nights sold and 13.3% in room nights sold registered in the corresponding quarter of 2014,” said NSA Senior Statistician: National Accounts Titus Kamatuka.
Despite the decelerating growth, the agriculture and forestry sector expanded during the first quarter of 2015, estimating a growth of 7.4% in real value added compared to a contraction of 16.3% of the corresponding quarter of 2014.
“The improved performance of this sector is led by the sub-sector of the livestock farming which posted a strong growth of 26.7% in real value added when compared to a decline of 28.1% registered in the same quarter of 2014. The growth was due to the number of cattle exported on hoof that increased 185.5% compared to a decline of 58.6% register in the same quarter of 2014,” said Kamatuka.
The NSA also reported that the utility sector recorded an estimated growth of 7.5% in real added value in the first quarter of 2015 compared to a decline of 3% in real value added in the corresponding quarter of 2014.
The strong growth was driven by a favourable increase in the water sub-sector was mainly driven by the high demand in agriculture, with water consumption by livestock increasing by 32.2% and irrigation which has increased by 27.2%.
In addition the NSA said that the electricity sub-sector is also estimated to have registered a growth of 6.3% in real value added, which was influenced by the increase in electricity generation and a decline in electricity imports.
The real value added for the construction sector is estimated to have recorded a growth of 26% in the first quarter of 2015 compared to an increase of 19.4% quarter-on quarter. “The performance of the sector emanated from the value of buildings completed that registered a growth of 17% compared to a decline of 18.9% reported in the same period of 2014,” said Kamatuka.