I&M Holdings PLC Financial Overview and Strategic Outlook
Economic Overview
Global Conditions
The IMF estimates the global economy to have
shrunk by 4.4% in 2020 as a result of the
global Covid-19 pandemic¹. There is great
uncertainty about the path of economic growth
this year, much of it due to risks surrounding
evolution of the virus and the speed and
effectiveness of vaccination rollouts².
Sub Saharan Africa
The regional GDP contracted by 3 percent in
2020 is expected to recover modestly to 3.1
percent in 2021. This outlook is subject to
some key downside risks, particularly
regarding the path of the COVID-19 pandemic
and the resilience of the region's health
systems³.
Pandemic Impact
Kenya's GDP contracted by 0.1% in 2020
having been depressed by slow down of the
economy due to Covid-19 containment
measures. For 2021, GDP is projected to
grow by 7.6% under the assumption that
economic activity will normalize due to a full
reopening of the economy. This is likely to
be revised with a lockdown having been
imposed in March 2021 in the capital city
and four other counties4.
Exchange Rate Developments
3Significant currency depreciations in most
Africa currencies observed in April (during
the peak of the crisis) continued through
the fourth quarter of 2020 and particularly
severe in in tourism-dependent economies
such as Mauritius and Seychelles
Source:
1Reuters update Dec 2020, 2ACCA'S Q4 Global economic conditions survey, ³Source IMF report: Regional Economic Outlook June 2020, 4IMF April 2021 Press release No. 21/98
M
Holdings
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