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Sunday, November 23, 2008

Is Kenya headed for a recession?

Will Kenya slip into a recession in 2009?

Let's just define recession as a contraction in REAL terms of the economy...

Tea prices had climbed but with the current financial problems facing Pakistan & UK... among the largest buyers of Kenyan tea, there has been a substantial drop in prices & volumes.

Tourism is likely to fall off as the financial crisis affects the travelers especially the budget travelers using credit cards.

2 comments:

MainaT said...

Yes.
Add to your bits;
Inflation; budget deficit; patchy rains; dollar strength; lower diaspora remittances.

Finally, lack of a dynamic economist at MoF.

Anonymous said...

Too late bwana. I think we are already in a recession but the lag in data is not showing it. Let's talk about how long before recovery.