The World Bank predicts that Kenya’s economy will expand by 6.9% in 2021, the fastest growth rate in Africa, and a more ambitious prediction than the government’s estimate of 6.4% economic growth in 2021. Continued support from the international lender in terms of public health interventions and support to the private sector are likely to spur strong economic growth in the country.
Kenya, like most other sub-Saharan countries, has been hard hit by the covid19 pandemic. The World Bank estimates that Kenya’s GDP contracted by 1% in the past year. Nonetheless, the bank expects economic activity to rise in the current year driven by World Bank’s support to businesses and the poor and vulnerable.
According to the World Bank other East Africa nations such as Rwanda, Tanzania, and Uganda, will expand by 5.7%, 5.5%, and 2.8% respectively in 2021. Major economies like Nigeria and South Africa are set to grow by 1.1% and 3.3% respectively in the period under review.
The US-based lender forecasts that the global economy will expand by 4% in 2021 after a 4.3% economic contraction in 2020.
World Bank Group President David Malpass says that even with the positive outlook, most economies face formidable challenges including debt management, public health challenges, and other structural reforms as they move toward economic recovery in 2021.