CBK sees the Kenyan economy grow by 5.7pc despite several global shocks

The Central Bank of Kenya (CBK) has said the country's economy will grow by 5.7 percent this year, a significantly positive outlook compared to forecasts by the World Bank and the International Monetary Fund (IMF).

The World Bank forecasts growth of 5.2 percent in 2024, which it says will be partly driven by private sector investment and a recovery in private consumption supported by reduced inflationary pressures.

On the other hand, the IMF adopted a dim outlook on the country's growth prospects this year, forecasting gross domestic product (GDP) expansion at 5 percent, driven by increased demand for goods and services, particularly low food prices.

But CBK Governor Dr Kamau Thugge has maintained a more positive outlook on the growth of increased production from the agricultural sector, which currently contributes nearly a quarter of Kenya's economy.

„The economy is estimated to expand by 5.6 percent in 2023 and 5.7 percent in 2024, mainly supported by favorable weather due to a rebound in the agriculture sector, a rebound in the services sector and an improved global growth outlook,” said Dr Tukey.

The CBK governor said Kenya's economy is well positioned to weather several global shocks and heightened uncertainties, expecting growth above the global and sub-Saharan Africa average in 2023 and 2024, „pointing to the economy's resilience and diversification”.

This projection is slightly higher than last year's estimated economic growth of 5.6 percent, and will be much higher in 2021, when the country's economic output rose by 7.6 percent.

Inflation, which plays a key role in influencing economic growth, has eased in recent months — hitting a two-year low of 5.7 percent in March — driven primarily by a slump in food prices.

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