Nyeri County Fiscal Strategy Paper 2021

Abstract

The CFSP, 2021 is prepared against a background of a contracting global economy occasioned by the outbreak and the rapid spread of the Covid-19 Pandemic during the year 2020. The Pandemic and the resultant containment measures have devastated global economies disrupting businesses and livelihoods. As a result, global economy is projected to contract by 4.4 percent in 2020 before rebounding to grow by 5.2 percent in 2021. As a country we have not been spared by the negative impact of the Covid-19 Pandemic. The Pandemic and the resultant containment measures have adversely affected businesses and economic activities and as a result the national economy contracted by 5.7 percent in the second quarter of 2020 from a growth of 4.9 percent in the first quarter of 2020. This phenomenon is largely attributed to substantial contractions in the services and industry sub-sectors. Nonetheless, there has been an improvement in economic activity in the third and fourth quarters of 2020, albeit at a slow pace, following reopening of the economy. Consequently, growth is projected to bounce back to 6.4 percent in 2021 from the projected 0.6 percent in 2020. This will largely depend on how the effect of the Pandemic unfolds.