CBK sees 2022 growth at 5.9 per cent

CBK sees 2022 growth at 5.9 per cent

  • At the same time, the reserve bank expects last year's growth to average eight percent.
  • The CBK estimates are based on revised GDP statistics through to September.
  • The education sector is expected to firm down 2022 growth with a 41.5 per cent growth surge.

The Central Bank of Kenya (CBK) projects the economy to grow at 5.9 per cent in 2022.

At the same time, the reserve bank expects last year's growth to average eight percent following the recent pickup to economic activity.

The CBK estimates are based on revised GDP statistics through to September and leading economic indicators (LEI) to December.

The education sector is expected to firm down 2022 growth with a 41.5 per cent growth surge ahead of mining and quarrying (16.9 per cent), ICT (15 per cent) and taxes on products (13.9 per cent.)

“Growth is firm and we should appreciate that. The economy as it is, despite the shocks - the largest ever tossed to us - has not just landed on its feet but has actually done remarkably well,” said CBK Governor Patrick Njoroge.

According to the CBK Governor, the authorities have prioritised preventing the health crisis from becoming an economic one.

The 2022 projection factors in the upcoming August 9 general elections but further takes into account the ongoing dynamism in recent years.

“You don’t know where the rocks are when you are sailing and so you have to maintain attention so as not to crash into a reef,” added Dr. Njoroge.

“We’ve seen elections before and we actually saw a double election five years ago. There is a lot of fear but that fear is more speculative than anything.”

The agriculture sector is expected to trail the recovery trend dipping by 0.9 per cent year over year even as the CBK seeks a review of the sector’s data.

“2020 was a good year for agriculture but beyond that, we did have less than favourable weather conditions in terms of uneven rainfall but there has been some data issues which we are working on with KNBS and the parent ninistry,” said Dr. Njoroge.

The accommodation and restaurant segment of the services sector is also expected to plunge by 7.6 per cent in 2021 but has shown signs of recovery from the second and third quarters of last year.

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