Kenya’s economy will bounce back stronger come 2021. According to the latest economic update by the World Bank, the economy will have a 5.2% growth post Covid-19 pandemic.
According to World Bank economists, the growth is hinged on the expected rise of the private sector investment and improved credit access. In addition to that, favorable weather conditions are expected to boost agricultural performance which in turn will have a positive ripple effect in food processing, exports and household income.
“We expect a strong pickup in 2021 of about 5.2 percent and here the main assumption is that investor confidence will be restored soon enough after containment of Covid-19,” read a statement published in Business daily.
Nevertheless, the institution intimated that the projected growth was highly dependent on the Government’s success to fight corona virus. Already specialists have hinted at the possibility of the corona virus pandemic spreading over to the second half of 2020.
Delayed containment points at a further and more lethal disruption of the economy in what is projected to cause a 1% decline into recession.
So far, transport, retail trade, tourism, events, leisure, manufacturing and construction have reported a massive drop in their profit margins due to state’s stringent directives to avoid Corona Virus contamination.
Contrary to what World Bank had projected earlier, this year the economy is expected to grow slowly at 2.5% down from the forecasted 6%.
