World Bank revises down Kenyan GDP growth for 2013, 2014
10 December 2013, 16:03
Nairobi - Kenya, east Africa's biggest economy, will grow slower than expected in 2013 and 2014, the World Bank said on Tuesday, leaving it lagging behind other economies in the region.
National output will rise 5.0 percent this year and an estimated 5.1 percent next year, said the bank, which in June forecast the $37 billion economy would grow by 5.7 percent in 2013 and 6.0 percent in 2014.
"The growth momentum generated ... was lost in the second and third quarters of 2013, held down by lack of government spending and inadequate transmission of the monetary policy stance to the real economy," the bank said in its December Kenya Economic Update.
On a positive note, the bank said Kenya's current account deficit narrowed from more than 10 percent of gross domestic product in 2012 to 7.5 percent in September. This had reduced the economy's vulnerability to external shocks, it said.
The high cost of credit was curbing the growth of small and medium sized businesses, the bank said.