According to Group chief economist, Jeff Gable real estate, infrastructure, tourism and the agricultural sector are contributing to the GDP growth. [Photo/Softkenya]
Kenya’s Gross Domestic Product (GDP) is forecast to grow at 5.5 percent in 2018, which is slightly higher compared to the 4.6 percent projected for 2017 mainly due to political calm and improved weather prospects.
Speaking during the launch of Barclays Africa 2017/18 Macro-Economic Report, Group chief economist Jeff Gable said real estate, infrastructure, tourism and the agricultural sector are contributing to the GDP growth.
Gable said despite the expected growth rate in East Africa region, which will be higher compared to the rest of Africa, weak credit growth and rise in oil prices is a concern.
Main risks to the outlook will include fiscal rebalancing, debt sustainability, infrastructure pay-off diversification and widening current account deficit.He said in 2018 the bank does not see any disruption other than political risks, fiscal slippages, setbacks to reforms to resolve corporate and financial.He said an abrupt tightening of global financing conditions or a sudden rise in financial market volatility could set back regional growth. On the other hand, stronger-than-expected global growth could benefit the more open economies in the region in the near term. “We are building debt faster than anything else in Africa and this could interfere with the growth rate focus.,” he said adding that credit ratings of Kenya according to Moody’s ratings have declined.