According to the latest report by the World Bank, Kenya’s economic growth is expected to rise by 3.7 per cent this year.
The report projects that the economic growth will accelerate to 4.8 per cent in 2011 though remaining below the potential increase over the medium term.
The report on Global Economic Prospects 2010 notes that the country would have done better was it not constrained by recurrent droughts and ensuing electrical shortages while also reeling from the effects of the global economic crisis.
According to the Kenya Broadcasting Corporation television, the report’s lead author Andrew Burns said growth would be bolstered by the recovery of external demand and by domestic stimulus packages.
Speaking during the release of the report in Nairobi on Thursday, Burns however, warned that if unchecked corruption, infrastructure bottlenecks, high-priced electricity, skills shortages and political uncertainty would continue to take their toll on growth.
He said the government’s plans to implement structural reforms in 2010-2011 including deregulation, privatization and trade liberalization especially within the East Africa Community would boost growth potential over the medium term.
He said the 2009 economic growth had improved to 2.2 per cent compared to 1.1 per cent realized in 2008.
The report warns that while the worst of the financial crisis may be over the global recovery was however still fragile and it predicts that the fall out from the crisis would change the landscape for financial growth over the next 10 years.
Source African Press Agency
African News from NetNewsPublisher.com
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