This archive report was first published on 5 June 2020.
On June 5, 2020, the International Monetary Fund (IMF) released fresh estimates that revealed Kenya had surpassed Angola as the third-largest economy in Sub-Sahara Africa.
Kenya, the largest economy in East Africa, had been ranked fourth in the region. However, its steady economic growth has propelled it to the third spot, leaving Angola behind.
According to the IMF, Angola's economy has contracted every year since 2016 due to declining oil output and the devaluation of its currency, the kwanza, in 2019. In contrast, Kenya's shilling has held steady.
The COVID-19 pandemic and related restrictions are expected to further impact Angola's economy, with the IMF projecting a 1.4 percent contraction in 2020. Kenya, on the other hand, is projected to grow by one percent, despite the pandemic.
Angola has taken measures to mitigate the economic impact of the pandemic, including approving a package of revenue and expenditure measures. The package includes additional healthcare spending, estimated at $40 million, as well as tax exemptions on humanitarian aid and donations.
Kenya has also earmarked Sh40 billion (0.4 percent of GDP) for additional health expenditure and other measures to support businesses during the crisis.
