
Standard Chartered Bank has unveiled its 2025 Global Market Outlook report at its headquarters in Westlands, Nairobi County.
The report highlights key global and regional economic trends, focusing on resilience and innovation in Africa, particularly Kenya, despite a global economic slowdown projected at 3.1% growth in 2025 compared to 3.2% in 2024.
The report underscores Africa’s growing economic significance, with countries like Benin, Côte d’Ivoire, and Ethiopia expected to achieve some of the continent’s strongest growth rates in 2025.
Industrial expansion, infrastructure development, and hydrocarbon production are said to drive this growth.
Moreover, the firm’s investment momentum continues to strengthen across Africa, supported by public-private partnerships and foreign investments in key sectors such as Botswana’s diamond industry, Côte d’Ivoire’s hydrocarbons, and Mauritius’s tourism.
Kenya, recognized as East Africa’s innovation hub, is projected to achieve a GDP growth of 4.7% in 2025 by leveraging advancements in digital technology, energy, and transport infrastructure to enhance regional connectivity and trade.
These efforts, combined with sound fiscal and monetary policies, position Kenya as a leader in economic transformation.
However, Kenya faces fiscal challenges as the International Monetary Fund (IMF) programme concludes in April 2025. With a debt-to-GDP ratio of 72.4%, the country must implement sustained fiscal reforms to manage deficits, projected at 4.8% for FY25 and 4.6% for FY26. Lower oil prices and a stable Kenyan Shilling are expected to reduce inflation to 4.7% in 2025, creating room for potential monetary policy easing.
“Kenya’s commitment to innovation and investment in wealth continues to create a resilient foundation for growth,” said Paul Njoki, Head of Wealth and Affluent Banking, Kenya and East Africa. “As we navigate a complex global environment, Standard Chartered is dedicated to supporting clients in achieving their financial goals.”
Global Economic Highlights
Globally, the report paints a mixed economic outlook for 2025.
According to the report, the US economy is expected to benefit from inflationary pressures and domestic growth driven by “America First” policies.
“US equities are forecast to outperform other regions. In contrast, Europe faces economic fragility, with Germany and France at risk of recession amid rising energy costs and trade tensions.”
In Asia, China’s economy is projected to grow at 4.5%, bolstered by government stimulus aimed at offsetting the impact of US tariffs.
Meanwhile, strategic investments in global equities, gold, and high-yield bonds are anticipated to present significant opportunities for investors.
Focus on Sustainable Growth
Standard Chartered noted it remains optimistic about Africa and Kenya’s long-term economic potential.
The Bank emphasizes the importance of sustainable reforms, infrastructure development, and regional cooperation to drive growth.
“By aligning global economic trends with regional strengths, Standard Chartered aims to support its clients and communities in achieving their financial and developmental goals in 2025 and beyond.”