What you need to know:
- The lender has projected the economy to rebound from a negative growth of 0.3 per cent in 2020 to five per cent in 2021.
- World Bank’s projections are significantly lower than government estimates for both last year and this year.
The World Bank has dimmed Kenya’s economic growth projections for this year amid uncertainty over full effects of spread of new Covid-19 variants that have bogged global trade.
The Washington-based multilateral lender, in its latest Global Economic Prospects report released Tuesday, projects Kenya’s economy to grow by 4.7 per cent, which is significantly lower than the government’s estimates of a 5.9 per cent growth this year.
The estimated growth rate is also lower than economic growth projections for 2021 ahead of a tight General Election in August, which is likely to slow investment into the country in the months before and after the outcome of the poll.
Economy to rebound
The lender has projected the economy to rebound from a negative growth of 0.3 per cent in 2020 to five per cent in 2021 boosted by reopening of the economy last year through lifting of numerous Covid-19 containment measures before slowing down to 4.7 per cent this year.
World Bank’s projections are significantly lower than government estimates for both last year and this year with the latter optimistic of higher economic growth to be boosted by implementation of mega infrastructure projects such as the Nairobi Expressway that is set to be completed this quarter as well as the affordable housing programme.