Kenya reviews economic growth prospects downwards
El Nino and high interest rates will dampen Kenya's economic growth rate this year, treasury has finally admitted.
It has been a long time coming but the list of reasons is not exhaustive. Rampant corruption and stretched government spending that has lead to too much borrowing even in the domestic market are other key drivers to a slow down economic growth.
According to reuters--which somehow always seems to have these scoops-- econmic growth would be in the range of 5.8 to 6.0 per cent. The government already downgraded its forecast to 6 per cent in October from the 6.5 to 7 percent it originally predicted.
This leaves an egg on the face of the Wold Bank and IMF who have seemed overly optimistic than the Kenyans themselves on the level of growth expect this year.
But this is a no brainer--it has been a long time coming. In fact, projections indicate that Kenya will be lucky to attain 54.2 percent growth. Mark you this is after the economy was 'upgraded.' Had it not it would be around 3.8 percent growth.
Read the rest here: http://www.businessdailyafrica.com/Kenya-trims-2015-growth-outlook-further/-/539552/2961314/-/o5sjbg/-/index.html
It has been a long time coming but the list of reasons is not exhaustive. Rampant corruption and stretched government spending that has lead to too much borrowing even in the domestic market are other key drivers to a slow down economic growth.
According to reuters--which somehow always seems to have these scoops-- econmic growth would be in the range of 5.8 to 6.0 per cent. The government already downgraded its forecast to 6 per cent in October from the 6.5 to 7 percent it originally predicted.
This leaves an egg on the face of the Wold Bank and IMF who have seemed overly optimistic than the Kenyans themselves on the level of growth expect this year.
But this is a no brainer--it has been a long time coming. In fact, projections indicate that Kenya will be lucky to attain 54.2 percent growth. Mark you this is after the economy was 'upgraded.' Had it not it would be around 3.8 percent growth.
Read the rest here: http://www.businessdailyafrica.com/Kenya-trims-2015-growth-outlook-further/-/539552/2961314/-/o5sjbg/-/index.html
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