Kenya Economic Update, April 2017, No. 15 : Housing - Unavailable and Unaffordable
Economic activity in Kenya remained robust in 2016. For the third consecutive year economic activity in Kenya picked-up, reaching an estimated 5-year high of 5.9 percent in 2016, once again placing Kenya among the fastest growing economies in Sub-S...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/988191491576935397/Kenya-economic-update-housing-unavailable-and-unaffordable http://hdl.handle.net/10986/26392 |
| Summary: | Economic activity in Kenya remained
robust in 2016. For the third consecutive year economic
activity in Kenya picked-up, reaching an estimated 5-year
high of 5.9 percent in 2016, once again placing Kenya among
the fastest growing economies in Sub-Saharan Africa.
Kenya's growth momentum in 2016 was supported by a
stable macroeconomic environment, low oil prices, favorable
harvest in the first half of 2016, rebound in tourism,
strong remittance inflows, and an ambitious government
infrastructure drive to relieve supply side constraints.
Near term GDP growth is expected to dip on account of
headwinds, however over the medium term GDP growth should
pick-up. Given headwinds from the ongoing drought, weak
credit growth, and the pick-up in oil prices, GDP growth is
expected to decelerate to 5.5 percent in 2017, a 0.5
percentage point mark down from earlierforecasts. However,
over the medium term, we expect these headwinds to ease
(rains are expected to return to normal in 2017), and
together with the projected steady strengthening of the
global economy, rebound in tourism, resolution of some of
the underlying causes of slow credit growth, and the easing
of some supply-side constraints related to the completion of
some major infrastructure projects, GDP growth is expected
to accelerate to 5.8 percent and 6.1 percent in 2018 and
2019 respectively, consistent with the underlying growth
potential of the Kenyan economy. |
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