Kenya’s GDP growth projected to recover to 5.8% in 2020January 14, 2020
NAIROBI, Kenya, Jan 14 – Kenya’s Growth Domestic Product growth is expected to recover to 5.8 percent in 2020.
ICEA Lion Asset Management Head of Research Judd Murigi says the expansion in the economy will be brought about by factors that often boost the country’s growth such as agriculture and payment of pending bills.
“We expect the GDP growth to recover, driven by a recovery in agriculture, manufacturing and financial services sector as we also expect improved private sector credit growth to be beneficial to GDP growth this year,” said Murigi.
However, the projection in the growth is at risk due to the heightened political temperatures ahead of the 2022 general elections.
“Some of the political realignments could take place could take place this and there is also the issue of a referendum for the building bridges initiative this could some extent derail GDP growth,” he added.
In 2019, Kenya’s GDP growth was affected by 10 sectors that contribute 70 percent towards the country’s growth.
“The agriculture, manufacturing, construction, trade, hospitality, and transport sectors were among the areas that grew at a slower pace relative to their performance in 2018,” reads the report.
The report has also highlighted the agriculture sector posing as a risk in the new year from the destruction caused by heavy rains in late 2019 and the ongoing locust invasion.
“Indeed, the construction sector decelerated for the fourth year in a row and only the financial services, real estate, education, and health sectors witnessed faster growth I 2019 relative to 2018,” said ICEA Lion Asset Management Head of Research Judd Murigi.
Globally, the market is projected to recover slightly in 2020 on emerging markets recovery, improving trade tensions and accommodative monetary policy.
ICEA’s report has also revealed that China’s growth is expected to fall below 6 percent for the first three decades.