Treasury cuts economic growth forecast again

Economy

Treasury cuts economic growth forecast again

Treasury secretary Ukur Yatani. FILE PHOTO | NMG 

The Treasury now expects the economy to grow below its initial projection of 2.5 percent in April on damaging shocks of Coronavirus pandemic which continue to hammer job opportunities.

Treasury secretary Ukur Yatani says the pandemic continues to cause “a major shock” to the economy, leading to underperformance in most sectors with consumption still depressed and new investments paused.

This will be the third year running that the country’s economy will be slowing, having dropped from 6.3 percent in 2018 to 5.4 percent last year, and making it the slowest expansion since 0.23 percent in 2008 when Kenya suffered twin shocks of deadly post-election violence and global financial crisis.

Mr Yatani said growth is this year being supported by farming activity as well as financial and ICT services which have shown resilience on the back of phased reopening of the country from July 6.

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