Future of Kenya is rosy, maintains World Bank

By EDWIN OKOTH
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Makhtar Diop, World Bank Group vice president for Africa. World Bank Vice President for Africa Makhtar Diop said the region’s external environment is expected to remain difficult, calling for diversified sources on income. The global lender, in its latest analysis of the continent’s economic trends, says the region will face more decelerated expansion even as it recorded the lowest GDP growth in the past six years. PHOTO | AFP

Summary

• The global lender, in its latest analysis of the continent’s economic trends, says the region will face more decelerated expansion even as it recorded the lowest GDP growth in the past six years.
• The released bi-annual report, Africa’s Pulse, says economic activity in sub-Saharan Africa slowed in 2015 to just 3 per cent in GDP, down from 4.5 per cent in 2014.
• “The 2016 growth forecast remains subdued at 3.3 per cent, way below the robust 6.8 per cent growth in GDP that the region sustained in the 2003-2008 period.
• Overall, growth is projected to pick up in 2017-2018 to 4.5 per cent. Delays in implementing adjustments to the drop in revenues from commodity exports and worsening drought conditions present risks to Africa’s growth prospects,” says the World Bank.

The World Bank has stood its ground on prosperous economic conditions for Kenya.The World Bank has stood its ground on prosperous economic conditions for Kenya, while citing hard times in other African economies.

The global lender, in its latest analysis of the continent’s economic trends, says the region will face more decelerated expansion even as it recorded the lowest GDP growth in the past six years.

The released bi-annual report, Africa’s Pulse, says economic activity in sub-Saharan Africa slowed in 2015 to just 3 per cent in GDP, down from 4.5 per cent in 2014.

“The 2016 growth forecast remains subdued at 3.3 per cent, way below the robust 6.8 per cent growth in GDP that the region sustained in the 2003-2008 period.

Overall, growth is projected to pick up in 2017-2018 to 4.5 per cent. Delays in implementing adjustments to the drop in revenues from commodity exports and worsening drought conditions present risks to Africa’s growth prospects,” says the World Bank.

The plunge in commodity prices - particularly oil, which fell 67 per cent from June 2014 to December 2015 – and weak global growth, especially in emerging market economies, are blamed for the region’s lacklustre performance.

"BRIGHT SPOTS"

The World Bank singled out Kenya again as among the few “bright spots” where growth continued to be robust in 2015, having been among the key recipients of the oil price decline dividend.

The report cites private consumption and public infrastructure investment growth as key cushions for the East African economic giants.

Other countries such as Côte d’Ivoire, which saw a favourable policy environment and rising investment also exhibited resilience, as Rwanda and Tanzania shared the fringe benefits of dropping oil prices.

World Bank Vice President for Africa Makhtar Diop said the region’s external environment is expected to remain difficult, calling for diversified sources on income.

“As countries adjust to a more challenging global environment, stronger efforts to increase domestic resource mobilisation will be needed,” he said.