But more than ever, Kenya’s economy is out of balance. The current account deficit has reached new record levels and could exceed 15 percent of GDP in 2012. Kenya needs to rebalance its economy, increase savings and create more incentives for exports. In times of economic turbulence, deepening EAC integration can serve as an additional buffer for external shocks.
For 2012 and 2013, the World Bank maintains its growth forecast of 5 percent. However, another series of shocks could easily create renewed economic turbulence, and slow down economic growth to 4.1 percent.