Kenya\u2019s economy is projected to stagnate this year, with a gross domestic product (GDP) growth forecast at 4.9 per cent, the same pace as last year.<\/p>\n
\nAccording to the World Bank\u2019s latest economic prospects report, the growth is, however, expected to edge up slightly to 5.0 per cent next year.<\/p>\n
\nThe stagnation reflects a mix of domestic and external pressures weighing on Sub-Saharan Africa\u2019s largest economies, with risks to the regional outlook still tilted to the downside.<\/p>\n
\nThe lender warns that growth could undershoot projections if global trade barriers rise, reform momentum slows, global growth weakens, or weather-related shocks intensify.<\/p>\n
\nCompared with its immediate neighbours, Kenya stands out as the only economy in the region with a subdued growth outlook.<\/p>\n
\nTanzania\u2019s economy is projected to expand by 6.2 per cent this year, up from 6.0 per cent last year.<\/p>\n
\nUganda is also expected to post faster growth of 6.4 per cent, slightly higher than the 6.3 per cent recorded previously.<\/p>\n
\nRwanda is forecast to remain the region\u2019s fastest-growing economy, with GDP expansion projected at 7.2 per cent, compared with 7.0 per cent last year.<\/p>\n
\nThe stronger performance among Kenya\u2019s neighbours underscores the relative drag on one of Africa\u2019s largest economies in the region, as inflationary pressures, climate-related shocks and exposure to global trade risks continue to weigh on growth.<\/p>\n
\nKenya is among a handful of African countries identified as particularly exposed to shifts in global trade, due to its reliance on the United States market for goods and commodity exports.<\/p>\n
\nThe lender notes that adverse changes in trade policy could further slow global growth, dampen demand, and trigger additional declines in commodity prices, factors that would directly affect Kenya\u2019s export earnings.<\/p>\n
\nAt the domestic level, persistent food inflation continues to constrain household spending and overall economic activity.<\/p>\n
\nIn the previous assessment, the World Bank attributed its downgrade of Kenya\u2019s growth outlook to rising food prices linked to prolonged drought conditions in Eastern Africa.<\/p>\n
\n\u201cFood price inflation remains a challenge in many Sub-Saharan African economies,\u201d the lender noted.<\/p>\n
\nIt had downgraded Kenya\u2019s GDP growth forecast for 2025 to 4.5 per cent, down from 4.7 per cent recorded the previous year.<\/p>\n","protected":false},"excerpt":{"rendered":"Kenya\u2019s economy is projected to stagnate this year, with a gross domestic product (GDP) growth forecast at 4.9…\n","protected":false},"author":2,"featured_media":22811,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[83,2557,14106,84,14105,14108,14107,2914,152,14104],"class_list":{"0":"post-22810","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tanzania","8":"tag-business","9":"tag-gdp","10":"tag-gross-domestic-product","11":"tag-headlines","12":"tag-inflation","13":"tag-kenyas-export-earnings","14":"tag-kenyas-economy","15":"tag-sub-saharan-africa","16":"tag-tanzania","17":"tag-world-bank-projects-kenyas-economy-to-plateau-at-4-9-per-cent-this-year"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/22810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/comments?post=22810"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/22810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media\/22811"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media?parent=22810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/categories?post=22810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/tags?post=22810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}