Kenya Economic Update - Fostering Trade for Robust Growth and Dynamic Job Creation (English)

Tight monetary policies, restrictive financial conditions, and the slowdown of global trade continued to weaken global growth. Global economic growth declined in 2023 and is expected to decline further in 2024. Although the monetary tightening in advanced economies is expected to end and the global headline inflation has reduced, policy rates are expected to only decline gradually, as core inflation has been more persistent. Commodity prices declined in 2023 and are expected to decline further in 2024. At the regional level, growth in Sub-Saharan Africa is expected to rebound in 2024-2025 driven by a boost in private consumption from the reduction in inflation and increasing real incomes. However, tight monetary policies and fiscal consolidation efforts will keep investment and public consumption subdued in 2024 even as inflation declines. Fiscal balances are expected to improve in 2024 but external borrowing costs remain high.