Kenya’s GDP growth will slow to 5.5 per cent in FY23 from the 5.5 per cent expected in the current fiscal year (2022), the World Bank said Thursday.
However, the World Bank said that growth is expected to rise to 5.3% in 2024, supported by increased private investments.
“Private investments are expected to drive economic growth in the medium term amid sluggish growth in households’ consumption,” the World Bank said in its latest report, “Kenya Economic Update, December 2022 : Continued Rebound, but Storms Cloud the Horizon: Policies to Accelerate the Productive Economy for Inclusive Growth.”
” However, consumption growth is likely to be dampened in the near term due to below average agricultural harvest, high inflation affecting real incomes, and tighter monetary policy.”
In the current fiscal, the country’s economy continued to rebound from the pandemic, with the real gross domestic product (GDP) increasing by 6 per cent year-on-year in the first half of 2022, driven by broad-based increases in services and industry.
This recovery was dampened by global commodity price shocks, the long regional drought, and uncertainty in the run-up to the 2022 general elections.
The agriculture sector contracted by 1.5 per cent in the first half of 2022 and with the sector contributing almost one-fifth of GDP, its poor performance slowed GDP growth by 0.3 per cent.
