In the second quarter, GDP growth was 0.2% higher than in the preceding quarter. Year-on-year growth was 4.6%.
Even before the outbreak of foot & mouth disease (FMD) in mid-September, the ranching industry had run into problems. Production of beef had been falling because of a shortage of stock (for a fuller discussion of the problems cause by FDM see the Commodities Report).
On the other hand, arable farmers had been doing rather well and were expecting even bigger soya crops than in the previous season.
The problem with the beef industry has affected the associated leather and meat-packing industries, which account for about a third of all manufacturing industry.
Another cause for worry is the continuing problems in the cement industry, which is holding back the construction industry. The problems here are leading to shortages of skilled labour as trained personnel move to more efficient markets. The big problem is that imports of cement cannot meet domestic demand and domestic production is insufficient.
On the trade side, imports have been strong while exports have been a bit weaker than they were in the second quarter of 2010.
Inflation: Monthly inflation in August was 1%, bringing the 12-month rate to 4.9%.
