Anne Waiguru, Cabinet Secretary Ministry of Devolution and Planning, launches Kenya’s 2013 Economic Survey Report. She noted the economy’s growth rate in the global economy dropped from 3.9 percent in 2011 to 3.2 percent in 2012.
Launching the Economic Survey Plan in Nairobi, Ms. Waiguru said that the rise in oil prices in the international markets, the ongoing economic turmoil in the euro zone, slowed growth in emerging markets and developing economies due to weak demand from advanced economies are major causes of economic decline.
Waiguru said that Tourism which is Kenya’s key source of foreign exchange earning, also declined by 1.9 per cent resulting from a drop in tourists from 1.8 million in 2011 to 1.7 million in 2012. She alluded that the sector was majorly affected by a slow down in the global economy especially the euro zone coupled with travel advisories following security concerns.
However, the Cabinet Secretary said that despite an increase in the country’s exports and imports from KSh 512.6 billion to KSh 517.8 billion and KSh 1,300.7 billion to 1,374.6 billion in 2011 and 2012 respectively, Kenya’s trade balance worsened further by 8.7 per cent in 2012 compared to 46.7 per cent in 2011.
Waiguru added that the nation’s Real GDP expanded by 4.6 per cent 2012 from the previous 4.4 per cent as the annual inflation decreased from 14 per cent to 9.4 per cent.She said that the decline in inflation was largely attributed to better food supply resulting from favorable weather conditions.
Concerning global and regional economy, Waiguru predicted that,”Sub-Saharan Africa growth will be sustained and is projected to rise to to 5.8 per cent in 2013 compared to 4.8 per cent in 2012.”
The Minister also predicted that the euro zone_ Kenya’s major trading partner is projected to register minus 0.1% growth in 2013 rising to 1% in 2014.Also she said that the global growth is expected to stand at 2.4 per cent in 2013 and gradually strengthen to 3.1 and 3.3 per cent in 2014 and 2015 respectively.
She said that the country is going to realize a GDP growth to double digit as promised by the current Jubilee Government through implementation of its 9-point Action Plan to achieve the anticipated Vision 2030.
Waiguru said that the government is going to increase investor and business confidence after the peaceful March 2013 elections, stability in macroeconomic environment, projected easing and stability of international oil prices, stability of the Kenya shilling and reforms in security, governance and justice sectors.