Kenya's business leaders optimistic about positive economic growth in 2024: central bank-Xinhua

Kenya's business leaders optimistic about positive economic growth in 2024: central bank

Source: Xinhua

Editor: huaxia

2024-02-09 22:49:00

NAIROBI, Feb. 9 (Xinhua) -- Kenya's business leaders are optimistic that the country's economy will flourish in 2024 despite elevated local and global challenges, the Central Bank of Kenya (CBK) said in a survey on Friday.

The optimism locally arises from increased investment in various sectors, in particular housing and healthcare, while globally, there is the easing of inflation and expected cutting of the benchmark rate by the United States.

"Despite uncertainties arising from continued geopolitical tensions and a modest global economic outlook, optimism for global growth improved with respondents citing the easing of global inflation," the central bank said in the survey released in the Kenyan capital of Nairobi.

The CBK added that locally, firms in the real estate sector expect growth to be supported by the government's focus on affordable housing projects, while tourism sector firms are on a continued post-COVID growth trajectory.

On the other hand, firms in the agriculture sector expect growth due to favorable weather conditions.

The rapid depreciation of the Kenyan shilling, the local currency, which had led to sharp increases in the cost of acquiring various goods and inputs, however, remains another big challenge for the firms, said the apex bank.

The World Bank forecasted that the country's economy would grow between 4.5 percent and 5.2 percent in 2024, while the National Treasury of Kenya projects the growth at 5.5 percent.

The survey targeted chief executives of more than 1,000 firms in manufacturing, agriculture, financial services, mining and energy, health, real estate, transport, and tourism sectors, who lead companies, some of which are foreign-owned ones.