The World Bank expects the worst performance of the Kenyan economy and warns of a debt crisis
The World Bank expected that the Kenyan economy would face its worst performance since the contraction that the country witnessed in 2020 as a result of the Corona pandemic, due to floods and protests against the government, while warning of the risks of a debt crisis.
And reducing The World Bank – in a report today, Tuesday – its expectations for economic growth in Kenya for the year 2024 to 4.7%, after expectations had indicated in June a growth of 5%.
The report explained that the violent floods Which resulted in the deaths of more than 300 people last April, along with the protests that left dozens dead, have negatively affected economic production.
He added that the Kenyan government continues to seek to achieve Financial balance by reducing spending.
The World Bank indicated that it expects growth of 5% next year, which is less than the previous estimate of 5.3%, pointing out that the main risks to this expectation continue to be represented by In declining financial performance, extreme climate events, and external economic challenges.
The report stated that “Kenya needs to address structural challenges, including those related to financial sustainability, weak exports, declines in productivity growth, and increasing frequency, severity, and severity of climate shocks to ensure growth.” Comprehensive while providing more and better job opportunities.”
The World Bank concluded its report on the situation in Kenya by stating that “the country still faces a high risk of a debt crisis, as many indicators show weakness in this situation.” field,” adding that “domestic debt, which is now the largest burden on Kenya, remains expensive and has relatively short terms, and unmet tax targets continue to undermine fiscal discipline efforts, requiring adjustments to the spending budget.”
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related
