Macroeconomic Forecast Kenya

We are forecasting Kenya's current account deficit to reach 7.0% of GDP in 2010 - its highest level in the last ten years - and then begin to decline gradually, reaching 2.0% of GDP in 2014. For Kenya this trend signals strong growth ahead. As a trade-hub for East and Central Africa, Kenya currently imports capital goods and industrial inputs for its own industries and those of its neighbours. At the same time, with the East African region's most advanced financial markets and many of its largest companies, the country is a notable destination for foreign investment. In this sense, high but declining current account deficits illustrate a strong level of investment at present that will, in time, ramp up Kenya's production and export potential.

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