Arusha: East African economies continued to perform well in 2012 despite daunting challenges. All of the region’s economies experienced strong growth, riding on the back of regional integration efforts of the East African Community (EAC). According to the East Africa Quarterly Bulletin produced by the African Development Bank, real Gross Domestic Product (GDP) increased by more than 7 per cent during the first quarter in Rwanda and Tanzania and strong performance was also reported for Uganda. Uganda posted a positive real GDP growth rate in the first quarter of 2012 following a negative growth in the last quarter of 2011. Burundi continued to be adversely affected by a series of negative shocks including high inflation, falling public revenue collections, and receding development partner support. Economic data from the region indicates several drivers of growth during the first quarter including services in Rwanda and industry in Uganda and Tanzania. Headline inflation decreased consistently through the second quarter of 2012, an indication of the effectiveness of monetary policies pursued by regulatory authorities in the region. The other drivers of the receding inflationary pressures included lower oil prices and good food harvests resulting from favourable weather and productive capacity enhancing strategies such as the Crop Intensification Programme in Rwanda and Kilimo Kwanza in Tanzania.