The central banks of the East African Community (EAC) member countries are forecasting a regional economic growth of 5.8% in 2025.
Speaking in Nairobi at the end of the 28th ordinary session of the EAC Monetary Affairs Committee, the Committee Chairman and Governor of the Central Bank of Kenya, Kamau Thugge, stated that this growth is expected to be driven primarily by the agriculture and services sectors.
He emphasized that these economic performances are supported by prudent monetary policies and favorable weather conditions that have boosted food production.
Despite these optimistic projections, the central bank governors of the region have warned of several risks that could affect the growth trajectory, including global trade tensions, geopolitical uncertainties, and the effects of climate change.
Regional inflation has experienced a significant decrease, dropping from 11.2% in 2023 to 9% in 2024, thanks to improved food supply and lower commodity prices.
It is expected to remain moderate in most countries of the region during 2025.
