The Central Bank of Kenya (CBK) released a report indicating job sectors that are likely to be profitable in 2021.
The CBK Monetary Policy Committee Market Perceptions Survey released on February 2, indicated that optimism in the country’s economic prospects had increased.
"In particular, 93% of banks and 74% of non-bank respondents were optimistic on the economic prospects in 2021. Respondents expect economic activity to increase in January and February," the report stated.
Respondents expected private sector credit growth to be supported by the recovery of economic sectors
affected by Covid-19 after lifting of restrictions (98% of respondents), support to essential economic sectors
The sectors that are expected to have improved performance are food and agriculture, health, communications and the digital economy.
The report noted that there was rising business confidence following the easing of Covid-19 containment measures, proactive government interventions to support sectors adversely affected by the pandemic and expected introduction of Covid-19 vaccines.
According to the CBK, there was generally expected recovery of economic sectors with rising demand for goods and services, and the reopening of learning institutions.
"As risks to this optimism, non-bank respondents cited the tax reversals in January 2021 which previously
brought relief to corporates and households, and expected protracted impact of the pandemic," the report noted.
The employment rate was expected to increase in 2021 as the business environment improved and as demand in the economy normalises.
Banks expect an increase in private sector credit growth in 2021, with the expected recovery of key sectors affected by Covid-19 and government policy interventions including the operationalisation of a Credit Guarantee Scheme for the MSMEs.
Inflation expectations remain anchored, with both bank and non-bank respondents expecting overall inflation to remain within the target range in January and February 2021.
Kenya National Bureau of Statistics (KNBS) released inflation data, revealing the inflation for January 2021 increased to 5.7%, from the 5.6% recorded in December 2020
However, respondents expected growth to remain below the pre-pandemic levels due to the lingering effects of the pandemic locally and globally, slow recovery of sectors such as tourism due to the slow roll-out of the vaccines, and political noise.
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