Economic Survey 1997

Events taking place in the world have a significant impact on the performance of our economy. Indicators suggest that in 1997, the world economy will recover with growth in OECD projected at 2.4 per cent in 1997 and 2.7 per cent in 1998. Growth in African countries is estimated at 5.0 per cent in 1996 compared to 3.0 per cent in 1995. The projected recoveries of the industrialized economies and the continued,, implementation of macro economic reforms and structural adjustments, is expected to trigger some growth in the Kenyan economy. Other challenges that still remain to be tackled include; high levels of unemployment, high level of poverty, poor and inadequate social services, physical infrastructure that need massive overhaul and the high cost of domestic credit