Economic Survey 1998

Abstract

Growth in the OECD area is expected to remain fairly strong and stable in 1998, at 2.9 per cent before declining slightly. Commodity prices are also expected to stabilise, which augurs well for developing countries. The Kenyan economic growth in 1998 is expected to be slightly higher than in 1997, mainly due to increase in tea, sugarcane, and horticulture production while tourism is expected to rebound due to promotional efforts being carried out. Food production is likely to pick up, with the exception of maize. Other factors that are expected to boost economic activities are improvement in infrastructure such as the reconstruction of the Mombasa-Malaba highway and maintenance of other road infrastructure; the ongoing efforts to enhance generation of electricity and high prices of the chief export commodities.