Kenya, among other developing countries, is staring at slowed growth rate following the unprecedented swings in commodity prices witnessed in the recent past, IMF now says. This was accompanied by a sharp rise in the volatility of commodity prices as well. The challenges from heightened commodity price volatility come on top of the problems caused by the surge in price levels. The lender reiterates that such swings in commodity prices can weigh on long-term economic growth, especially for commodity exporters. "Higher volatility in commodity prices may induce greater volatility in government finances in commodity-exporting countries, and thereby lead to stop-start public investment," IMF says.

Source: Daily Nation March 30, 2023 19:51 UTC