According to Trading Economics global macro models and analysts, Kenya’s GDP per capita is anticipated to reach $1500.00 USD by the end of 2021. According to our econometric models, Kenya’s GDP per capita will trend around 1550.00 USD in 2022 and 1600.00 USD in 2023 in the long run.
What accounts for Kenya’s low GDP per capita?
Kenya is East Africa’s commercial, financial, and transportation hub. For the past eight years, Kenya’s real GDP growth has averaged over 5%. Kenya has been classified as a lower middle income country since 2014, when its per capita GDP exceeded a World Bank criterion. Kenya’s economic and development trajectory could be jeopardized by poor administration and corruption, despite the country’s expanding entrepreneurial middle class and stable growth. Although accurate figures are difficult to come by, unemployment and underemployment are exceedingly prevalent, maybe approaching 40% of the population. Agriculture…
Is Kenya wealthy or impoverished?
Kenya’s economy is classified as lower-middle income. Despite having the largest and most developed economy in eastern and central Africa, 36.1 percent of Kenya’s population (2015/2016) lives below the international poverty line. Economic inequity, government corruption, and health issues are the main causes of extreme poverty. Poverty, on the other hand, exacerbates these issues. Fortunately, Kenya’s government has made numerous efforts to combat poverty, and it has received significant assistance from international organizations. According to a recent MPI index, the occurrence rate of poverty has consistently reduced. However, long-term efforts are still required in Kenya to eradicate poverty.
In Kenya, how is GDP calculated?
GDP growth rate in percentage terms at market prices based on constant local currency. The aggregates are calculated using constant US dollars. GDP is calculated as the total gross value added by all resident producers in the economy, plus any product taxes, minus any subsidies not included in the product value. It is estimated without taking into account depreciation of manufactured assets or natural resource depletion and degradation.
How is the Kenyan economy doing?
NAIROBI, Kenya, 14 December 2021 Kenya’s economy has shown resiliency in the aftermath of the COVID-19 pandemic, with output in the first half of the year exceeding pre-pandemic levels. The country’s gross domestic product (GDP) is predicted to expand by 5% in 2021, making it one of the fastest recovering countries in Sub-Saharan Africa.
Overall economic growth is predicted to be strong in 2022-23, at 4.9 percent per year, similar to pre-pandemic levels (5 percent average annual growth from 2010 to 2019). Growth has been bolstered by rebounds in industry and, particularly, services, according to the 24th edition of the Kenya Economic Update, “From Recovery to Better Jobs.” However, after a particularly excellent performance in 2020, agricultural output declined by 0.5 percent in the first half of 2021, owing in part to below-average rains. A comeback in private consumption has aided demand-side recovery, which has been aided by rising employment and household incomes.
Kenya’s economy has continued to adjust to the pandemic and its attendant restrictions. Through most of 2021, a mix of containment measures, such as a nightly curfew, was in place, but more economically disruptive measures, such as lockdowns and travel restrictions, were phased out, limiting the impact on economic activity. The vaccination distribution, which started slowly owing to supply difficulties, has accelerated as more vaccine supplies have arrived, notably since September. Through the third quarter of 2021, this has aided economic recovery and growth.
Kenya had received a total of 16,201,670 vaccines as of December 5, 2021, with 7,583,134 vaccines administered. While vaccine acceptability appears to be strong, the government’s goal of fully inoculating the adult population of around 30 million people by the end of 2022 remains a long way off. About 10% of adults (2.9 million people) had had their entire vaccination by December 6, 2021, while another 16% (4.9 million people) had taken their first dose.
In the medium term, the research predicts strong growth. This forecast takes into account the fact that while certain sectors, such as education, have recovered quickly, others, such as foreign tourism, have just recovered partially and will take much longer to recover. The expected continued recovery of hotels and restaurants, trade, transportation, and other services is contingent on significant progress in immunization to help avoid fresh waves of infections and accompanying containment measures.
“Recent economic performance has been excellent, and the outlook is positive,” said Alex Sienaert, Senior Economist for Kenya. “However, the future path of the epidemic remains a key source of uncertainty in Kenya, as it does everywhere,” he added. “It is vital that Kenya continues to undertake medium-term fiscal consolidation plans to promote further recovery, minimize debt distress risks, and reestablish space for social and development investment.”
Aside from pandemic-related dangers, a second major domestic risk factor is the current drought, which is devastating areas of the country and is already creating tremendous hardship. If the drought worsens or spreads, it will have a negative impact on the economy in the short term. The key external risks are slower global growth, higher-than-expected energy prices, and tighter external financing conditions.
Accelerating job creation will be critical as Kenya strives for an inclusive and resilient economic recovery. This report’s special topic expands on the labor market study presented in the last Kenya Economic Update (KEU23), focusing on business dynamics and job creation. The country’s jobs and economic transformation (JET) strategy is vital to creating a durable recovery from the COVID-19 crisis and generating good jobs for Kenya’s rising youth population, according to a previous report. Kenya’s fast-growing workforce will be able to participate in and drive JET if continued investment in human capital and social protection is made.
What is the current state of Kenya’s economy?
Kenya’s economy continues to grow steadily, with real GDP increasing by roughly 5.6 percent on average over the last five years (2014-2018). However, in 2019, economic growth has slowed, owing to decreasing agricultural output and weak private sector investment.
What percentage of Kenya’s population lives in poverty?
In 2021, 16 percent of Kenya’s population lived on less than $1.90 a day. The country’s extreme poverty percentage fell marginally from 17% in 2020 to 16% in 2021. That year, the share climbed, breaking a decreasing trend that had been in place since 2017.
In comparison to other countries, how poor is Kenya?
Kenya has long suffered with poverty and the symptoms that come with it, such as high illness rates and child mortality. Kenya has a short life expectancy, which is just one illustration of the negative effects of poverty on a country. The following are ten facts regarding Kenyan poverty.
Poverty in Kenya
- According to statistics from 2016, 35.5 percent of Kenya’s population lives in poverty. This essentially means that more than a third of the population lives on less than $1.90 per day in the United States. Much of Kenya is rural territory, which contributes to the country’s high poverty rates.
- In a 2005 UN report, Kenya was placed 154th out of 177 nations in terms of life expectancy and GDP. The entire region surrounding Kenya is also at the bottom of the list. Kenya’s situation, on the other hand, has significantly improved since this report.
- An unstable economy is created by desert land and unpredictable weather. Over three-quarters of Kenya’s population is reliant on agriculture for survival. An unreliable source of sustainability is created by a lack of fertile land and irregular weather.
- Kenya’s government is regarded as one of the world’s most corrupt. Poor people are unable to advance in society if their government is not working for them and government funds are being misappropriated.
- Poverty levels in Kenya have decreased dramatically during the last decade. Currently, roughly 35.5 percent of the country lives in poverty, compared to 43.6 percent in 2005. Kenya’s poverty rate is presently lower than that of any other country in Eastern Africa, and it is continuing to fall.
- The agriculture industry is a vital contributor to the reduction of poverty rates. While good luck with weather patterns is a wonderful thing, it puts Kenya’s economic growth at jeopardy. Unexpected droughts have the potential to reverse progress made in the fight against poverty.
- Despite progress, the World Bank does not expect that Kenya will be free of poverty by 2030. Representatives noted that, while Kenya’s GDP has been increasing year after year, the rate has not been quick enough to eliminate poverty by the year in question.
- Since 2005, Kenya’s literacy rate has improved by 11%. This figure exemplifies the enormous progress Kenya has made in its educational system. Kenya’s literacy rates are greater than those of similar-sized countries like Ghana.
- In the previous ten years, child mortality has reduced. In 2008, 52 out of 1,000 live births were affected. It had dropped to 39 in 2014. Death rates among children under the age of five dropped from 74 to 52 per 1,000.
- Kenyans have had better access to sanitation as a result of lower poverty levels. Despite this, Kenya continues to lag behind several of its neighboring countries in terms of availability to safe drinking water. Kenya, on the other hand, continues to outperform countries like Ghana and Rwanda in terms of sanitation.
In recent decades, the facts about poverty in Kenya have improved dramatically. The country has improved its education and health-care systems, and its GDP has increased year after year. Despite the fact that the situation is far from ideal, things are improving in Kenya.
Is Tanzania more prosperous than Kenya?
Kenya’s travel infrastructure is better and more reliable than Tanzania’s since Kenya is a wealthier country. There are more hotels and guesthouses, it is easy to convert foreign currency to shillings because all major banks offer this service, and public transit is plentiful.