IMF Set to Revises Kenya’s Growth Forecast Upwards
The International Monetary Fund, IMF, has given the Kenyan economy a positive outlook saying it will adjust its growth projection next month.
The fund which had projected economic growth of 0.3 percent this year says the economy has shown strong signs of resilience beating many expectations.
According to the IMF Resident Representative for Kenya Tobias Rasmussen, the change in outlook is supported by an improvement in several economic indicators.
IMF says there will be an “upward revision” of its June forecast for the Kenyan economy where it had warned that the CODIV-19 pandemic will see the Kenyan economy shrink by 0.3 percent in 2020.
The fund says there has been an upturn in most activity indicators looking at the numbers coming out of Kenya and it’s fair to say that the outruns here have so far been better its expectations.
The National Treasury expects the Kenyan economy to grow by just 2.5 percent due to COVID-19 induced economic slowdowns.
When the first case of the virus was reported in Kenya n Marc this year, the government responded by closing the airspace, imposing dusk to dawn curfew, and curtailing inter-county movements.
These measures have so far been lifted as the number of cases continues to decline. Renaissance Capital forecasts Kenya’s economy to grow at 1.5 percent in 2020 driven by superior agricultural yields and strong export of flowers and horticultural goods.