World Bank Projects Kenya Among the Fastest-Growing Economies in Africa
Kenya will be one of the fastest-growing economies in Africa in 2023, according to the World Bank.
In its Africa Pulse report published in October, the Bretton Woods Institution emphasized that Kenya’s economy is presently stable despite facing some obstacles.
“In Kenya, growth remains resilient this year despite political tensions that were partly due to the higher cost of living,” read part of the report.
The study predicts that Kenya’s economic activity will increase to 5% in 2023, a modest increase from 4.8% in 2022.
The organization attributed the growth to enhanced agricultural productivity and an increase in private consumption.
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Additionally, the financial institution attributed Kenya’s economic growth to the implementation of sound macroeconomic policies, investments in infrastructure and human capital, and a diversified economic basis.
According to the report, Kenya’s Gross Domestic Product (GDP) continued to increase at the start of the year (2023), increasing from 3.3% in the final quarter of 2022 to 5.1% in the first quarter of 2023.
The report from the World Bank predicted that Kenya’s economy will continue to expand in 2024 and 2025.
Despite this, the report revealed a significant 7 percent decline in the value of the Kenyan shilling, resulting in increased earnings from key agricultural exports such as tea, flowers, vegetables, and fruits.
In addition to the agricultural sector, improvements were noted in the manufacturing and private sectors.
Concerning inflation, the World Bank disclosed that Kenya was modifying its monetary policies strategically to curb inflation without causing undue hardship or job losses, highlighting the importance of a balanced approach.
Additionally, several other African nations, including Côte d’Ivoire, Senegal, Niger, and Rwanda, are on a positive economic trajectory.
World Bank Projects Kenya Among the Fastest-Growing Economies in Africa