NAIROBI (Xinhua) --
Kenya’s economy is expected to slow down
from 5.9 percent in 2016 to 5.5 percent in 2017, the
World Bank forecast on Wednesday.
Senior Economist Allen Dennis told a media briefing in
Nairobi that the contraction is due to the ongoing
drought, weak credit growth as well as an increase in
international oil price.
the medium term, we expect growth to pick up due to the
strengthening of the global economy as well as a rebound
in the tourism sector,” Dennis said during the launch of
the 15th Edition of the Kenya Economic
publication comes at a time when Kenya is transiting
between the second medium term plan and the third medium
term plan that is currently under preparation.
Woods institution projects that the Gross Domestic
Product (GDP) growth will accelerate to 5.8 percent in
2018 and 6.1 percent in 2019 as Kenya unleashes it
underlying growth potential.
growth is outperforming its Sub-Saharan African peers,
especially those that are dependent on oil and other
commodities. Dennis said that Kenya faces a number of
risks to its future economic growth.
risks include the potential for fiscal slippages,
current drought conditions being prolonged beyond 2017
as well as security concerns,” he added.
the senior economists, external risks could come from
weaker than expected growth from Kenya major trading
partners as well as a U.S. interest rates hike.
the government to maintain prudent macroeconomic
policies that will help the East African nation continue
with its strong economic performance.
is currently facing certain economic headwinds that are
likely to dampen GDP growth in 2017, I am happy to note
that the GDP forecast is expected to pick up in 2018 and
2019 as headwinds ease,” said Diarietou Gaye, the Bank’s
Country Director for Kenya.
Collaborative efforts between government and the private
sector are required, and a supportive policy and
regulatory environment strengthened so that relevant
tools can be leveraged.
says Kenya’s economic performance is expected to
strengthen once the rains return to normal, the global
economy picks up, the tourism sector rebounds, and some
of the underlying causes of slow credit growth are
resolved, as well as the completion of major