Kenya’s economy is expected to increase by 6.4 per cent in 2021 and 6.0 per cent the following year, according to Central Bank Governor Patrick Njoroge, thanks to the economy’s reopening following the elimination of COVID-19 limitations.
The statistics are better than the central bank’s predictions from September, which predicted 6.1 per cent growth this year and 5.6 per cent in 2022.
Njoroge said in a virtual press conference that the forecasts had not yet taken into account how the Omicron coronavirus variant’s introduction may affect performance.
Njoroge predicted that growth will be bolstered by a revival in manufacturing and tourism.
Kenya’s central bank kept its benchmark lending rate at 7.0 per cent on Monday, citing “well-anchored” price hikes and early signs that the economy is benefiting from the country’s supportive monetary policy.
The coronavirus-induced crisis impacted Kenya’s economy, as it did countries around the world, as limitations enacted to combat the epidemic lowered earnings and hampered growth.
The recovery has begun this year, but a shortage of COVID-19 vaccinations and new waves of infections, fueled by the introduction of new and more infectious varieties, could slow it down.
After declining 0.3 per cent last year due to the effects of the COVID-19 epidemic, the finance ministry anticipates 6% growth in 2021.
Annual increase in the second quarter was 10.1 per cent, up from 4.7 per cent in the same quarter the previous year.
According to data from the statistics office, the recovery was aided by a rebound in most industries and the relaxation of COVID-19 restrictions.
