Publication: Kenya Economic Update, June 2012: Walking on a Tightrope--Rebalancing Kenya's Economy with a Special Focus on Regional Integration
Date
2012-06
ISSN
Published
2012-06
Author(s)
World Bank
Abstract
In 2012, Kenya's economy has been
on a tightrope. Policy makers have had to walk a fine line
between stabilizing the economy and maintaining the growth
momentum. While inflation has declined, the exchange rate
stabilized, and the fiscal position improved, fundamental
economic imbalances continue to make Kenya vulnerable to
shocks. In the absence of economic and social turbulence,
Kenya should grow at 5 percent in 2012 and 2013, which will
still be substantially below its neighbors. Kenya has been
benefitting from the integration and growth momentum in the
East African Community (EAC), which has become one of the
most vibrant economic regions in the world. However, despite
impressive increases in trade between the five EAC partners
in recent years, there is still a large untapped potential.
EAC trade can increase several-fold if unnecessary
restrictions in the trade of goods and services particularly
nontariff barriers were removed.
Citation
“World Bank. 2012. Kenya Economic Update, June 2012 : Walking on a Tightrope--Rebalancing Kenya's Economy with a Special Focus on Regional Integration. © World Bank, Nairobi. http://openknowledge.worldbank.org/handle/10986/26666 License: CC BY 3.0 IGO.”