Economy: World Bank, Cytonn project growth in 2020
Improved credit growth to the private sector, increased investor confidence and expected recovery of agriculture sector are some of the factors that will drive the country’s growth prospects this year, two leading institutions have said in their economic outlook report.
The economic indicators such as inflation, currency and exchange rate are projected to at least remain stable or neutral in most part of 2020, the two institutions say in their reports.
Cytonn Investment Management Plc says in its report that gross domestic product growth is projected to grow at between 5.7 per cent and 5.8 per cent in 2020 – which is slightly higher than 5.6 per cent projected in 2019.
World Bank on the other hand says Kenya’s growth is expected to hit 6 per cent. Statistics from Cytonn indicates that risks to the economic growth, however, lie in some of the major sectors which recorded subdued performance last year such as the agricultural sector, manufacturing sector and taxes on products.
The World Bank report shows that Kenya in 2020 will be among the 12 countries in the sub-Saharan Africa region whose economies will grow at more than 6 per cent. “Growth which stood at 5.8 per cent is seen to be edging up to 6 per cent,” the report adds.