NAIROBI, Kenya Dec 10 – Kenyans spent 2.5 times more on shopping in 2021 compared to 2020 as the economy slowly recovered from the effects of the pandemic, a new Mastercard report has revealed.
According to the report, shifts in household savings, economic growth and consumer spending on “stuff” vs. “experiences” improve as businesses continue to move to the digital space.
The report reveals how five fundamental factors, savings and spending, supply chains, digital acceleration, global travel, and a growing list of economic risks, will continue to shape the global economy.
Other findings from the report show that consumer spending of built-up savings could contribute an additional three percentage points to the global GDP in 2022.
This is as household saving rates nearly doubled in 2021.
Further, the report noted that the pandemic sparked spending growth on goods from 39 per cent to around 47 per cent at its peak, roiling the services economy while burdening supply chains.
Mastercard Foundation expects the balance to normalize in 2022 as borders open and services become more accessible and desirable again.
On the digital economy, the report notes that 20 per cent of the digital shift in retail will reshape how and what consumers buy.
E-commerce subscriptions gained traction in 2021 as nearly 88 per cent of countries across 32 markets saw a surge in subscription services compared to the previous year.
Even so, Mastercard noted that potential risks remain with the potential to disrupt the global economy.
“New Covid-19 variants like Omicron pose the biggest immediate risk, but we’re keeping an eye on nearly a dozen additional risks that have the potential to derail recovery,” the firm said.
