4 July 2008
Nairobi — Kenya's economic growth is on the recovery path after slowing down following the post-election violence, an international organisation and local investment outfit said on Thursday.
The International Monetary Fund (IMF) and AIG Investment, in separate statements, said that the economy had rebounded since the formation of the Grand Coalition Government.
"We are quite confident that a growth rate of 4.5 per cent is achievable," Mr Edward Gitahi, a senior investment manager at AIG Investment said. AIG had earlier projected a 3.5 per cent growth rate based on first quarter's events and prevailing sentiments.
IMF projects a 4 per cent growth rate terming it as "a respectable result given the events of the first quarter."
The revised projections came after a team from the international lender spent 10 days in the country assessing economic prospects and talking to government and players in private sector.
"While a full recovery in some sectors is likely to take time, including in tourism, the economy as a whole is already rebounding," IMF noted in its statement.
AIG Investment vice president, Mr Peter Wachira, said that should the economy fundamentals keep the current upturn, the rate could grow up to a high of between 6 and 7 per cent.
"We have upgraded our growth projection to 4.5 per cent for 2008 and we are saying it can grow by 7 per cent," Mr Wachira said.
That, he however added, depends on the ability of the coalition government to hold together and implement a broad based economic growth strategy.
The government projects a growth rate of between 4 per cent in the worst-case scenario and an optimistic 6 per cent.
On Tuesday, the government released growth figures reporting a negative 1.3 per cent growth over the first three months of the year but with a bullish outlook as inflation data showed signs of easing.
Cost of goods
Inflation, a measure of change in the cost of commodities, has been on an upward trend as result of post-election violence and high global fuel prices recording a high of 31.5 per cent in May.
Last month, the rate receded to 29.3 per cent with experts projecting a further fall to about 25 per cent.
"The inflation outlook is negative on the back of rising crude oil prices, high food prices and proposed increase in electricity tariffs. We, however, estimate that overall inflation could average 25 per cent in 2008," Mr Wachira said.
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It is strange that an failed state's economy [that is in a perpetual recession - indeed a terminal depression from which orderly recovery is unlikely,] can be said by well-meaning people that it is "growing"!
Could it be that when the ingokho of a destitute man gets one kifaranga then billionaire Gates can point at the man and tell him to rejoice in that his wealth has increased by 100%?
Or is it a case of the wealth of a starving man with nothing growing infinitely when he acquires one ingokho?
It is sobering to watch the doomed Kenyans -… [Read Full Text]
Now you can see who is the REAL MINISTER. one accused of thet fraud and forgery and another concern that the kenyans have enough food and that market is not flooded with magendo goods that enrich the few at the cost of wananchi RUTO is the real minister, there are doubts about Kinyuma