IMF revises Kenya’s 2021 economic growth forecast to 7.6%

KENYA – The International Monetary Fund (IMF) has revised Kenya’s 2021 economic growth forecast upwards from 4.7% to 7.6% after reaching a financing agreement with Kenyan government. In February 16, 2021, IMF revealed that it had reached a US$2.4 billion financing agreement with Kenya to support the country’s Covid-19 response and to reduce the level of debt relative to the GDP. The IMF program is based on revenue-led fiscal consolidation and strong economic growth. East Africa’s largest economy expects a steady increase in tax revenue from the main tax revenue…

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Kenya’s GDP shrinks as COVID-19 pandemic hurts economy – World Bank

KENYA – The latest World Bank economic analysis for Kenya projects the economy to contract by between 1.0 % and 1.5 % in 2020, as ongoing COVID-19 containment measures and behavioural responses restrict activity in Kenya and its trading partners. The Kenya Economic Update, Navigating the Pandemic, notes that the downturn in economic growth reflects the more severe economic impact of the pandemic to date than had been initially anticipated, including a large impact on the national accounts of the closure of educational institutions since March. In response, the government has…

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East Africa’s growth projection predicted to go down by 1.2% in 2020 – AfDB

EAST AFRICA – Economic disruption caused by the COVID-19 pandemic has pushed East Africa’s growth projection for 2020 down to 1.2%, a rate that outstrips other African regions and is forecast to rebound to 3.7% in 2021, according to the African Development Bank’s (AfDB) East Africa Regional Economic Outlook 2020. Prior to the COVID-19 pandemic, the region’s economic growth was projected at more than 5%, well above the continent’s average of 3.3% and the global average of 2.9%. However, COVID-19-induced shocks and a locust invasion have contributed to job losses,…

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AfDB’s African Economic Outlook projects Africa’s growth may rebound to 3% in 2021

AfDB’s African Economic Outlook

AFRICA – The African Economic Outlook, an African Development Bank publication, has projected that Africa’s economic growth may rebound to 3% in 2021 from a -3.4% in the worst-case scenario for 2020. The African Economic Outlook supplement however, cautioned that the growth outlook for 2021 and beyond would depend largely on African governments’ effectiveness in flattening the curve of the outbreak and policies to reopen economies. The supplement noted that the curve of the pandemic in Africa was flattening gradually. However, COVID-19 remains a serious threat to lives and livelihoods,…

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Africa’s economy forecast to grow by 3.4% despite external shocks- African Economic Outlook 2020

AFRICA –The African Development Bank Economic Outlook for 2020 has revealed that Africa’s economic growth remained stable in 2019 at 3.4 percent and is on course to pick up to 3.9 percent in 2020 and 4.1 percent in 2021. AfDB partly attributed the slower than expected growth partly to the moderate expansion of the continent’s “big five” — Algeria, Egypt, Morocco, Nigeria, and South Africa – whose joint growth was an average rate of 3.1 percent, compared with the average of 4.0 percent for the rest of the continent. Former…

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Nigeria needs to diversify economy and end reliance on oil to fight poverty – IMF Boss

NIGERIA – Newly appointed Managing Director of the International Monetary Fund MD, Ms Kristalina Georgieva, has said that Nigeria needs to diversify the economy from the oil in order to reduce the level of economic vulnerabilities currently facing the country. Georgieva, who said this in Washington DC, United States, during the World Bank/IMF annual meetings, explained that the level of economic growth in the country was too slow to reduce its poverty rate. According to the IMF boss, the multilateral financial institution understood how important Nigeria is to the economy…

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World Bank slashes Sub-Saharan Africa’s growth forecast as global economy uncertainties escalate

AFRICA – The World Bank in October this year cut its economic growth forecast for sub-Saharan Africa for 2019 to 2021 by 0.2 percentage points from its earlier projection. The multilateral financial institution cited a slowdown in fixed investment and policy uncertainty in the global economy as reasons for the downward review of the growth forecast. The bank said the region’s economy was expected to grow by 2.6 per cent this year, from a 2.8 per cent projection in April. It further said that growth would rise to 3.1 per…

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