July 2021 Macroeconomic and Financial Market Review
According to the World Bank , Kenya ’ s Gross Domestic Product ( GDP ) is projected to grow by 4.5 % in 2021 , signaling a partial recovery from the COVID-19 pandemic , which caused growth to stall last year . Economic activity is estimated to accelerate to above 5 % in 2022 and 2023 , according to the latest World Bank analysis .
According to the recently released Kenya Economic Update report on Kenya by the World Bank , economic growth is expected to be driven by ;
i . An upturn in economic activity attributable to the reopening of the economy ,
ii . Moderate recovery in the service sector as the vaccine rollout continues to pick up pace , and ,
iii . Adequate agricultural output and sales , aided by rising external demand from the gradually reopening global economy .
There was a general optimism in the first half of the year , with the average Stanbic Bank Monthly Purchasing Managers ’ Index ( PMI ) for the first five months averaging 49.7 , which is higher than the 42.4 recorded in H1 ’ 2020 , pointing to a solid improvement in the private sector .
CPF Spotlight | Edition 02 4