Kenya’s economy to grow by 4%
Nov 01, 2009
THE International Monetary Fund said on Thursday it expects Kenya’s economy to improve gradually after an appropriate response to the fallout from post-election violence in 2008, the global economic slowdown and drought.
THE International Monetary Fund said on Thursday it expects Kenya’s economy to improve gradually after an appropriate response to the fallout from post-election violence in 2008, the global economic slowdown and drought.
The IMF said in a statement after a two-week visit to Kenya that the economy was projected to grow 2.7% this year, 4% in 2010 and then growth rates would gradually increase to 6.5% over the medium term.
“Thanks to prudent economic policies that helped reduce public debt as a share of gross domestic product, Kenya has the necessary space to ease fiscal policy and help sustain domestic demand in the face of slowing economic growth,†Michel Atingi-Ego, senior adviser in the IMF’s African department, said in the statement.
East Africa’s biggest economy grew 7.1% in 2007 before a series of shocks almost brought it to a standstill in 2008, with growth of just 1.7%.
The government unveiled a fiscal stimulus package in its June budget for the 2009/10 fiscal year, focusing on increased infrastructure spending to ensure a modest recovery this year.
“Economic performance is expected to improve gradually, but as risks remain, therefore policies should aim at addressing emerging challenges and promoting sustainable high growth,†Atingi-Ego said.
The IMF said in addition to the $209m loan it approved in May under the Exogenous Shocks Facility, Kenya has since received $350m of special drawing rights (SDRs) through general and special allocations made to all IMF members.
The IMF distributed $250 billion worth of special drawing rights, the Fund’s unit of account, among its 186 members as a way to boost liquidity in the face of the financial crisis.
Reuters
The IMF said in a statement after a two-week visit to Kenya that the economy was projected to grow 2.7% this year, 4% in 2010 and then growth rates would gradually increase to 6.5% over the medium term.
“Thanks to prudent economic policies that helped reduce public debt as a share of gross domestic product, Kenya has the necessary space to ease fiscal policy and help sustain domestic demand in the face of slowing economic growth,†Michel Atingi-Ego, senior adviser in the IMF’s African department, said in the statement.
East Africa’s biggest economy grew 7.1% in 2007 before a series of shocks almost brought it to a standstill in 2008, with growth of just 1.7%.
The government unveiled a fiscal stimulus package in its June budget for the 2009/10 fiscal year, focusing on increased infrastructure spending to ensure a modest recovery this year.
“Economic performance is expected to improve gradually, but as risks remain, therefore policies should aim at addressing emerging challenges and promoting sustainable high growth,†Atingi-Ego said.
The IMF said in addition to the $209m loan it approved in May under the Exogenous Shocks Facility, Kenya has since received $350m of special drawing rights (SDRs) through general and special allocations made to all IMF members.
The IMF distributed $250 billion worth of special drawing rights, the Fund’s unit of account, among its 186 members as a way to boost liquidity in the face of the financial crisis.
Reuters