Kenya Economic Survey 2022

Abstract

World real Gross Domestic Product is estimated to have grown by 5.9 per cent in 2021 compared to a contraction of 3.1 per cent in 2020. The growth was mainly attributed to easing of COVID-19 restriction measures which led to increased global trade and increased activities in both the industrial and service sectors. The growth was manifested in advanced economies and Emerging Markets and Development Economies which expanded by 5.0 per cent and 6.5 per cent, respectively, in the review period. Sub-Saharan Africa economy grew by 3.7 per cent in 2021, mainly due to favourable weather conditions in most of the countries in the region. East Africa Community economy grew by 4.9 per cent in the period under review compared to 1.0 per cent growth in 2020. World trade volume increased by 9.3 per cent in 2021 compared to a contraction of 8.2 per cent in 2020, reflecting increased demand and activities in the economy. Global inflation rose from 3.2 per cent in 2020 to 4.3 per cent in 2021 due to increase in prices of energy and agricultural commodities, and supply chain disruptions. Unemployment rate eased from 6.6 per cent in 2020 to 6.2 per cent in 2021 as businesses reopened and the number of working hours increased, after relaxation of COVID-19 restrictions. Real Gross Domestic Product (GDP) is estimated to have grown by 7.5 per cent in 2021 compared to a contraction of 0.3 per cent in 2020. Most economic activities recorded positive growths except in Agriculture, Forestry and Fishing activities which contracted by 0.2 per cent in the review period. Activities that were affected more severely by the pandemic in 2020 such as Education and Accommodation and Food Service grew faster than those that were less severely affected. Economic growth in 2021 was supported by improved performance in key sectors of the economy including; Manufacturing (6.9%), Wholesale and Retail Trade (7.9%), Real Estate (6.7%), Transportation and Storage (7.2%), and Financial and insurance activities (12.5%).