Macroeconomic Outlook

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Macroeconomic Outlook

 

The county’s performance is largely dependent on the formulation and implementation of prudent policies to guide service delivery and the country’s economic performance

Recent developments in the key macroeconomic variables are encouraging. Growth in real GDP remains resilient but downside risks remain. Real GDP grew by 4.3 percent in the second quarter of 2013, compared to 4.4 percent during a similar period in 2012. Overall inflation increased slightly during the 2nd half of 2013/2014 on account of upward revisions  in  local  pump  prices  and  food  items  as  well  as  the  CPI  base  effects. Short  term  interest  rates  declined,  consistent  with  the  easing  of  monetary policy stance. In particular, the uptake of bank credit by  the  private  sector  increased  by  13.5  per  cent  in  the  twelve  months  to  July  2013 compared  to  16.7  per  cent  target. The Kenya Shilling exchange rate has stabilized against major world currencies following increased short term capital inflows and remittances