PKF in Eastern Africa
In 2015, the global real Gross Domestic Product (GDP) decelerated to 3.1% in 2015 from 3.4% in 2014. The baseline projection for global growth in 2016 is a modest 3.2%, broadly in line with 2014, and a 0.2% downward revision relative to the January 2016 World Economic Outlook (WEO) update. The recovery is projected to strengthen in 2017 and beyond, driven primarily by emerging market and developing economies, as conditions in stressed economies start gradually to normalize.
We are pleased to attach a briefing on the Kenya Budget Statement for the fiscal year 2016/2017. The Finance Bill 2016 has not been issued and therefore the finer details of each of the proposals set-out in the Budget Statement may not have been comprehensively dealt with in our briefing. We will in due course issue a more comprehensive analysis of the Finance Bill 2016.
Global recovery is continuing broadly. The pace of activity remains geographically uneven with economic growth in advanced economies reaching 3% in 2010 while growth rates in emerging and developing economies reached more than 7%. Capital flows to emerging market economies resumed remarkably quickly after the crisis with net foreign direct investment increasing from $274 billion in 2009 to $294 billion in 2010.
Overall the global economy is estimated to have grown by 4.6% in 2010 up from a -1% decline in 2009.
The 2012/13 financial year comes when the country is still facing significant economic challenges, which include; high fuel prices, inflation and the depreciation of the Uganda shilling against other currencies. This has threatened to reverse the country’s economic growth and long standing record of macroeconomic stability.
Real GDP growth is projected to reduce from 6.7% registered in the 2010/2011 financial year to 3.2%.