Kenya will Grow its Economy by 0.1% in 2019 - World Bank

Kenya’s economic growth rate will rise by 0.1 percent in 2019, this is according to World Bank’s 2019 Global Economic Prospects report.

World Bank has attributed the low growth rate to the tightening global financing conditions, intensified trade tensions and significant financial stress experienced by most developing countries.

Kenya recorded 5.8 per cent growth rate last year.

“Debt vulnerabilities in emerging market and developing economies, particularly low-income countries, have increased. More frequent severe weather events would raise the possibility of large swings in international food prices, which could deepen poverty,” says World Bank.

Generally, growth in sub-Saharan Africa is expected to pick up to 3.4 percent in 2019, rising to an average of 3.7 percent in 2020-21

“This is predicated on diminished policy uncertainty and improved investment in large economies, together with continued robust growth in non-resource intensive countries. However, external headwinds have intensified, as growth among main trading partners moderates, global financial conditions tighten, and trade policy uncertainty persist,” part of the report noted.

Kenya has been listed as one of the non-resource-intensive countries alongside Cote d’Ivoire and Tanzania whose economic activity is expected to remain robust.

World Bank says that growth in these “fast-growing countries” will be boosted by public investment and strong agricultural production.

However, reports by the World Bank contradicts the one released by the National Treasury which predicts Kenya to have a 6.1 per cent growth rate in 2019.

“This growth will be supported by a pickup in agricultural and manufacturing activities underpinned by improved weather conditions, strong service sector, stable macroeconomic environment, ongoing public infrastructural investments and sustained business and consumer confidence,” explains Treasury in its draft Budget Policy Statement.