Addis Ababa: Central bank governors from the East African Community (EAC) are projecting that the regional economy will grow by 5.8 percent this year, despite ongoing global economic challenges. The Chairperson of the EAC Monetary Affairs Committee and Governor of the Central Bank of Kenya, Kamau Thugge, highlighted that this positive outlook is expected to be driven by robust performances in the agriculture and services sectors.
According to Ethiopian News Agency, Thugge expressed these views at the 28th ordinary meeting of the EAC Monetary Affairs Committee. The meeting was attended by central bank governors from Burundi, Kenya, Uganda, Tanzania, Somalia, Rwanda, and South Sudan. The governors acknowledged that while the economic growth outlook is optimistic, there are potential risks posed by global trade tensions, geopolitical issues, and climate change.
The central bank governors noted that the region's average inflation rate declined to 9 percent in 2024 from 11.2 percent in 2023. This reduction is attributed to effective monetary policies, improved food supply due to favorable weather, and easing global commodity prices. Looking ahead, inflation is expected to continue its downward trend in most EAC countries in 2025.
Thugge pointed out that the EAC's economic performance has shown resilience amidst global shocks, buoyed by strong agricultural performance and the robustness of the services, mining, and oil sectors. During the meeting, progress on the revised roadmap towards achieving the East Africa Monetary Union by 2031 was also reviewed.