Quarterly Market Analysis Report July-October 2020

Abstract

The COVID-19 pandemic remains a major downside risk to global economic activity. Advanced economies are projected to contract by 8 per cent and emerging markets and developing economies by 3 per cent growth in 2020. Kenya’s economy contracted by 5.7 per cent in the second quarter of 2020, resulting in an average -0.4 percent half year growth rate. The overall inflation in Kenya declined from a high of 7.7 per cent in January to 4.8 per cent in October 2020. A general decline in prices was experienced in food and non-alcoholic beverages, housing and utilities, health, clothing and footwear while fuel inflation took a gradual increase occasioned by rise in crude oil and subsequent increase in local pump prices. The short rains in the next quarter are expected to maintain food prices stable...