The year 2012 experienced slow global economic growth. World Output grew by 3.2 percent only as compared to 3.9 percent in 2011. The Euro zone went into a recession as growth in other advanced economies was too low to make a substantial dent in unemployment. In emerging and developing economies growth decelerated.
In June 2013 the IMF further trimmed down the global economic growth forecast for this year to 3.1% less than the 3.3% forecast in April 2013. The main cause being: the slowdown in emerging market economies, lowered expectations for U.S. growth and deepening recession in the Eurozone. Declining global demand for goods and services will impact negatively on growth in developing economies.
On 19 June 2015, Moody's upgraded the East African Development Bank’s (EADB) rating to Baa3 from Ba1 with a stable outlook reflecting (1) the significant improvement in the bank’s capital buffers over the last few years, due to a material increase in paid-in capital from its shareholders; and (2) marked progress in recent years in strengthening governance and risk-management policies and capabilities, which have resulted in a sharp decline in non-performing loans.
The East African Development Bank (EADB)'s credit profile continued to strengthen in 2015, driven by (1) a sustained improvement in asset quality; (2) improvements in its liquidity position; (3) additional increases in paid-in capital from the bank's shareholders; and (4) notable progress in strengthening governance and risk-management policies.