Kenya's economic growth to rebound next year

27 November 2020 | Economics

Duncan Miriri

Kenya's economic growth is expected to bounce back next year, the World Bank said on Wednesday, as it emerges from a projected decline in output this year caused by the coronavirus crisis.

East Africa's biggest economy is expected to contract by 1.0 - 1.5% this year as the Covid-19 pandemic pushes 2 million people into poverty and takes a toll on the government's finances, the World Bank said in a new report.

"The economy is projected to rebound relatively quickly in 2021, lifting real GDP by 6.9% year on year," the bank said in its twice a year review of the Kenyan economy, boosted by the resumption of learning in all educational institutions in January. The government forecast 6.4% growth next year.

The World Bank said its forecast for growth in 2021 still faced significant risks, including the uncertainty around the length and severity of the pandemic, unpredictable weather conditions and the pace of the global economic recovery.

Kenya's economy contracted by 0.4% in the first half of this year, compared with an expansion of 5.4% a year earlier.

The bank said the pandemic increased poverty by 4 percentage points as incomes dropped and people were laid off from work.

Unemployment

"The unemployment rate increased sharply, approximately doubling to 10.4% in the second quarter," it said, citing official data.

Kenya's total debt jumped to 65.6% of gross domestic product in June this year from 62.4% a year earlier, the World Bank said, as the fiscal deficit widened.

The bank urged the government to take advantage of debt service relief offered by richer nations, to free up liquidity that would have gone into repayments.

Finance Minister Ukur Yatani told Reuters last week that the government planned to make a final decision soon on joining the G20's Debt Service Suspension Initiative (DSSI), aimed at helping poor countries weather the pandemic.

"As economic conditions allow, policy should progressively prioritise returning to a medium-term fiscal consolidation path," the World Bank said. - Nampa/Reuters

Similar News

 

South Africa's mining industry to support vaccine rollout

21 hours ago | Economics

South Africa's mining companies will support government in the rollout of Covid-19 vaccines as the nation battles a surge in infections, the industry body said...

Price monster continues to be gentle

21 hours ago | Economics

The annual inflation rate for December 2020 stood at 2.4%, down from 2.6% recorded in December 2019, a decrease of 0.2 percentage points.This brings great...

Kenya Airways plans more pay cuts

21 hours ago | Economics

Kenya Airways plans further pay cuts for employees of as much as 30% after the airline was hit by the coronavirus pandemic that has caused...

Namibian economy expected to continue bleeding red ink

21 hours ago | Economics

PHILLEPUS UUSIKUAlthough most economies, including South Africa, rebounded in in the third quarter of 2020, Namibia’s economy remains into deeper recession.According to Indileni Nanghonga, the...

China remains a top market for Namibian exports

1 day - 18 January 2021 | Economics

PHILLEPUS UUSIKUTotal exports deteriorated in November last year by 3.9% when compared to its level of N$8.3 billion observed in November 2019.The top three countries...

Nudo supports striking Shoprite employees

1 day - 18 January 2021 | Economics

The National Unity Democratic Organisation (Nudo) has thrown its weight behind employees of the Shoprite group who have been striking since December for better wages.Employees...

Vulnerable residents relocated to avoid flooding

1 day - 18 January 2021 | Economics

Residents of informal settlements who were relocated by the City of Windhoek (CoW) from riverbeds and other areas to lessen their exposure to flooding have...

Ivory Coast faces 100 000-tonne cocoa bean pile-up

1 day - 18 January 2021 | Economics

ANGE ABOAA pandemic-induced slowdown in global chocolate demand has led to a pile-up of about 100 000 tonnes of cocoa beans in Ivory Coast's interior,...

Nearly half-billion up for SME loans

4 days ago - 15 January 2021 | Economics

PHILLEPUS UUSIKUFast tracking the disbursing of loan payments is of critical importance to ensure that affected Small and Medium Enterprises (SME’s) receive funds on time...

TransNamib unable to meet wage increment demands

4 days ago - 15 January 2021 | Economics

TransNamib management said the company is currently unable to meet any wage increases due to its well documented weak financial position.TransNamib stated this while responding...

Latest News

South Africa's mining industry to...

21 hours ago | Economics

South Africa's mining companies will support government in the rollout of Covid-19 vaccines as the nation battles a surge in infections, the industry body said...

Price monster continues to be...

21 hours ago | Economics

The annual inflation rate for December 2020 stood at 2.4%, down from 2.6% recorded in December 2019, a decrease of 0.2 percentage points.This brings great...

Audit firm ‘knew’ of Fishcor...

21 hours ago | Crime

STAFF REPORTERWINDHOEKStier Vente Associates, external auditors for beleaguered state fishing company Fishcor, only reported the suspicious Fishrot-related transactions to the Public Accountants’ and Auditors’ Board...

Covid-19: Former Rundu mayor Ihemba...

21 hours ago | People

KENYA KAMBOWERUNDURundu mayor Gabriel Kanyanga has described former Rundu councillor Ralf Ihemba, who died from Covid-19 yesterday, as a hero and a loyal Swapo cadre.Kanyanga...

Creating change through gaming

21 hours ago | Youth

Enzo AmueleLothario Smith, a 17-year-old learner who is currently grade 11, recently launched his first game on both Android and IOS platforms after working on...

Kenya Airways plans more pay...

21 hours ago | Economics

Kenya Airways plans further pay cuts for employees of as much as 30% after the airline was hit by the coronavirus pandemic that has caused...

Namibian economy expected to continue...

21 hours ago | Economics

PHILLEPUS UUSIKUAlthough most economies, including South Africa, rebounded in in the third quarter of 2020, Namibia’s economy remains into deeper recession.According to Indileni Nanghonga, the...

Blind loyalty is costing Namibia

21 hours ago | Opinion

Too many people confuse loyalty with blind obedience. When loyalty clouds judgement to the extent that one is ready to ignore their inner child’s voice...

Angola releases Namibians arrested for...

21 hours ago | Justice

NAMPARUNDUFour Namibians who were held at the Gciriku Post holding cells for illegally crossing into Angola have been released.Three boys and a man aged 23...

Load More