Strong economic growth expected in 2019
The World Bank predicts that Kenya’s economic growth in 2019 will grow at a rate of 5.8 per cent, largely attributed to a stable business environment.
Analysts at Faida Investment Bank share the same views in a report titled ‘Kenya Macroeconomic Outlook: 1H2019’. They expect strong growth across the country’s diverse sectors in the first half of 2019. The rise will be driven by improved agricultural production due to suitable weather, high tourist numbers, and growth in the manufacturing sector.
The analysts expect inflation to remain at low levels ranging from 2.5 – 5.0 percent mainly supported by low food prices as well as dropping global oil prices. The researchers project that Kenya’s current account deficit will narrow in 2019 due to lower levels of imports and higher income from the tourism industry as well as rising diaspora remittances.
Kenya shilling is expected to remain stable in the short term. Similarly, forex reserves are projected to remain in the same level they were in 2018.
The report by Faida Investment Bank predicts that yields on Short term bonds will remain low due to the strong demand from investors and high liquidity in the market.