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Kenya’s central bank reviews 2023 GDP forecast downward. Here’s why

Published

2 years ago

March 31, 2023

Kenya’s central bank has reviewed its economic projection for the year. In its latest projection, the apex bank says the economy is expected to expand by 5.8% in 2023.

The new projection by the central bank is at a slower pace than the previous forecast of 6.1%. It claims it is a result of slower growth in the agricultural sector.

The Central Bank Governor, Patrick Njoroge made the new projection known at a news conference on Thursday, stressing that the East African powerhouse like other countries in the region, was emerging from the worst drought in four decades.

Njoroge revealed that its foreign exchange reserves, which stand at $6.4 billion, equivalent to 3.6 months of import cover, were expected to rise by $1.4 billion by the end of April, with further assistance from the IMF by the end of June.

The government has had to extend credit periods for essential imports such as petrol due to a lack of a vibrant interbank foreign exchange market.

Njoroge said the return of interbank trade over the past two weeks had smoothed out volatility in the shilling exchange rate.

“So, yes, the journey has started and already you can see a positive outcome in terms of the … reactivation of the interbank market.

“We scaled down agricultural growth which has brought down our projection for overall growth in 2023”, he said.

Kenya’s inflation rate is still above the government’s preferred range of 2.5% to 7.5%. The country’s statistics office revealed recently that the inflation rate rose to 9.2% year-on-year in February from 9.0% a month earlier, largely driven by food and transport prices.

As part of moves to manage the rising inflation, the central bank on Wednesday raised its benchmark lending rate to 9.50% from 8.75%, and said there was room for further tightening of monetary policy in anticipation of higher inflation.

The country has also witnessed recent unrest following protests led by opposition figure, Raila Odinga, over the growing cost of living in the country.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”