Which Eastern African Economy Is Larger Than Kenya?..
- Prime Minister Abiy Ahmed on Tuesday alleged that Ethiopia has managed to become the largest economy in the East Africa region and the third giant in sub-Saharan Africa.
Abiy painted the rosy picture of his country’s economy in remarks while addressing the House of Peoples Representatives.
He said that Ethiopia’s macro economy has been resilient and continued to register growth amid various bottlenecks resulting from man-made and natural challenges including the bloody conflict in the Tigray region, the Ukraine-Russia crisis, the COVID-19 pandemic and drought.
The premier prided the alleged achievement further saying that the economic growth trajectory has impressed even global economists.
- Liberalized and strong economy in the region
Kenya is the largest and the most advanced economy in East and Central Africa; with strong growth prospects supported by an emerging, urban middle class and an increasing appetite for high-value goods and services.
STRONG AND LARGE REGIONAL PLAYER
Kenya has the second largest population within the EAC at 43 million and is growing at a rate of 2.7 per cent per annum. There is a rising trend towards urbanization, which is contributing to an increase in consumer demand for high value goods. This trend is fore casted to continue, with 50 per cent of the population expected to live in urban areas by 2050.
The size of Kenya’s middle class is growing as evidenced by the growth in its gross national income per capita, which has increased at a CAGR of 2 per cent over the past 10 years.
World Bank Projects Kenya, The Second Largest Eastern African economy Among the Fastest-Growing Economies in Africa
World Bank has ranked Kenya among the fastest-growing economies in Africa in 2023.
The Bretton Woods Institution in its Africa Pulse report published in October, highlighted that Kenya’s economy is currently anchored on strong footing despite experiencing some challenges.
“In Kenya, growth remains resilient this year despite political tensions that were partly due to the higher cost of living,” read part of the report.
According to the study, Kenya’s economic activity is projected to rise to 5 percent in 2023, a slight increase from 4.8 percent in 2022.
Nonetheless, the report indicated a notable 7 percent decline in the value of the Kenyan shilling, leading to increased earnings in key agricultural exports such as tea, flowers, vegetables, and fruits.
The currency of eastern Africa’s second-largest economy is on track for its 29th consecutive month of declines as capital inflows dry up. It has depreciated 18% this year, set for its biggest annual drop since 2008.
Additionally, several other African countries are on a positive economic trajectory, including Côte d’Ivoire, Senegal, Niger, and Rwanda.