NAIROBI, May 9 (Xinhua) -- Central banks of the East African Community (EAC) member states on Friday projected regional economic growth at 5.8 percent in 2025.
Kamau Thugge, governor of the Central Bank of Kenya and chairperson of the EAC Monetary Affairs Committee, said the growth outlook will be supported by continued strong performance in the agriculture and services sectors.
Thugge made the remarks during the 28th ordinary meeting of the EAC Monetary Affairs Committee, which was attended by central bank governors from Burundi, Kenya, Uganda, Tanzania, Somalia, Rwanda and South Sudan.
The EAC apex banks said that despite the positive growth outlook, downside risks remain, mainly due to global trade tensions, geopolitical concerns and climate change.
The governors said that the average inflation rate in the region declined to 9 percent in 2024 from 11.2 percent in 2023, which reflects the impact of monetary policy measures, improved food supply due to favorable weather conditions and easing global commodity prices. Inflation is expected to continue moderating across most regional countries in 2025.
Thugge said that economic performance in the EAC region has remained relatively resilient despite global shocks, largely supported by strong performance in the agriculture sector and the resilience of the services, mining and oil sectors.
The meeting reviewed progress made in implementing the revised roadmap toward the realization of the East Africa Monetary Union by 2031. ■