Mkikuyu- Akili timamu
- Feb 16, 2018
GDP is not calculated in KSH..Its calculated in $$ That is why you are able to compare GDPs Between countries inspite of different currencies. Infact if we compare Tz vs Ke GDP purely based on their respective currencies Tz is far ahead in numbers, but to compare sensibly we have to use an exchange rate and peg everything to the dollar..If you add value to a product you are allowed to increase the price, this is economics 101 I do get how you dont understand this. Your own article disproves your point on currency value affecting GDP instead it talks about GDP affecting currency value(Truly english is not your first language). But for evidence, our agriculture grew very fast last year combined with our services and real estate.
That is how important an exchange rate is to GDP figures, IMF has maintained kenya has 17.5% over valuation, if you factor this in the calculation then ke GDP is slighly over $75bn