<< Click to Display Table of Contents >> Navigation:  Finance and Economic Planning > CBROP > 2014-15 FY CBROP > RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK > Macroeconomic Outlook > Growth Prospects

 

The Country’s economy is projected to grow by 5.1 per cent in 2014. Medium term prospects are stronger, with the growth in Gross Domestic Product (GDP) projected to improve to around 6 per cent. Growth will  be  augmented  by  production  in  agriculture  following  receipt of  adequate  rains,  value  addition  in  agriculture,  completion  of  key  infrastructure projects  (such  as  roads  and  energy),  and  other  initiatives  geared  towards  exports promotion

 

Domestic demand is expected to be robust following increased investor confidence. Despite the increase in inflation in the recent past, inflation is expected to revert back to target of 5 percent with a 2.5 percent band in the medium term. Stability in interest rates and exchange rates is expected to promote access to credit for private sector and boost investments and consumption to stimulate growth. Continued improvements and stability in the macroeconomic variables will ensure the county operates in a stable economic environment.