A large percentage of the population currently derives its living from agricultural activity, often on a subsistence basis. The country’s economy grew rapidly between 2003 and 2008, as world demand for commodities increased alongside higher prices. However, 2008 saw droughts reduce agricultural exports and slow the economy even before the onset of the global recession.
The economy fell 3.8% in 2009, exports contracting as a result of the reduction in world demand and commodity prices. Growth resumed at 13% level in 2010, but slowed through 2011-12 as the stimulus subsided and a combination of drought and foot-and-mouth outbreaks led to a drop in beef production and other agricultural exports.
In 2013, the economy took another leap as a result of positive export growth. Political uncertainty, corruption, limited progress on structural reform and deficient infrastructure remain the main obstacles to long-term growth.
Composition of GDP: