Kenya on the rise as region’s economic growth remains sluggish

Kenya’s economy is expected to be among the best in the Sub-Saharan region heading towards the end of 2016.

 

According to the latest Regional Economic Outlook report by the International Monetary Fund (IMF) Kenya, will maintain a robust growth, reaping from cheaper oil.

The report states that the country’s projected growth will remain on course and expand by over 6.0 per cent in the last quarter of 2016 and rise to 6.5 per cent in 2017.

This is in stark contrast to other Sub-Saharan countries whose average stands at 1.4 per cent.

Robust economy

Speaking at the launch of the report, National Treasury Cabinet Secretary Henry Rotich owed the robust economic growth to ongoing investments in infrastructural development, private sector investments, resilient domestic demand, private sector investments, recovery in the tourism sector and growth in exports to the East African sub-region.

“Investors are eager to continue investing in Kenya as our economy is already diversified.

As we venture into oil exportation, we will be able to avoid the oil curse and use oil revenues only as another source of revenue and not the only revenue,” Rotich added.

However, despite the positive growth, the CS cautioned Kenyans, urging them to live within their means in order to avoid financial shocks that are currently being experienced by other countries.

Troubled countries

The report painted a grim picture of traditional economic powerhouses such as Nigeria and South Africa, which are under severe economic strains and are depressing the overall growth of the Sub-Saharan region.

Output among oil exporters is expected to shrink by 1.3 per cent this year, weighed down by a deep contraction in Nigeria as South Africa continues to struggle with low commodity prices and poor confidence.

Other countries plagued with the same problems include the Democratic Republic of Congo, Ghana, Zambia and Zimbabwe.

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