African Development Bank (AfDB) has projected that the country’s real Gross Domestic Product (GDP) growth will next year post the third best performance among its East Africa Community (EAC) partners.
A report of the newly released annual East Africa economic outlook shows that the country’s GDP growth is projected to slow down to 5.3 percent in 2023 from 5.7 percent this year although the growth would be the third-best performance after Rwanda and Uganda at 7.1 percent, respectfully.
The report projects that Tanzania’s GDP would grow by 5 percent next year, followed by Burundi, 3.8 percent and South Sudan -0.3 percent.
An earlier projection by AfDB in May had shown that the country’s real GDP growth would in 2023 trail the performance of its EAC partners apart from Tanzania and Burundi.
The projection had shown that Rwanda would maintain the fastest GDP growth by next year at 7.9 percent followed by South Sudan and the Democratic Republic of Congo (DRC) tied at 6.5 percent, Uganda 6.2 percent, Kenya 5.7 percent, Tanzania 5.6 percent and Burundi 4.6 percent.
The Treasury projects the economy to grow by 5.5percent this year, as it continues to recover from the impact of the Covid-19 pandemic.
Growth bounced to 7.5percent last year after a contraction of 0.3 percent in 2020.
In the first quarter of this year, the economy expanded by 6.8 percent from a revised 2.7 percent in the same period a year earlier, due to a recovery in most economic activities that had contracted significantly in the first quarter of 2021 due to Covid 19.
The Kenya National Bureau of Statistics said that the second quarter of this year showed economic momentum was largely navigated by financial services, insurance, transportation, wholesale and retail trade among others.
