Browsing: Economic outlook 2020

Africa’s growth stands to rebound to 3% in 2021

Africa’s growth stands to rebound to 3 per cent in 2021 said the African Development Bank in its African Economic Outlook 2020 supplement.

According to updated forecasts from the African Development Bank, economic growth in Africa could rebound in 2021, provided that governments manage the COVID-19 infection rate well.

In the bank’s socio-economic assessment of the pandemic’s impact, growth is now projected to rebound to 3 per cent in 2021 from -3.4 per cent in the worst-case scenario for 2020.

In January this year, the bank released a supplement to its African Economic Outlook which forecast Africa’s growth at 3.9 per cent in 2020 and 4.1 per cent in 2021.

The growth outlook for 2021 and beyond would largely depend on African governments’ effectiveness in flattening the curve of the pandemic and policies to reopen economies the supplement cautioned.

“To reopen economies, policymakers needed to follow a phased and incremental …

East Africa holds its ground as Africa’s fastest growing region

East Africa’s growth projection for 2020 has been pushed down to 1.2 per cent, a rate that outstrips other African regions and is forecast to rebound to 3.7 per cent in 2021, according to the African Development Bank East Africa Regional Economic Outlook 2020.

The projection is under the baseline scenario that assumes the virus is contained by the third quarter of 2020.

Before the COVID-19 pandemic, East Africa’s economic growth was projected to be more than 5 per cent, which is above Africa’s average of 3.3 per cent and the global average of 2.9 per cent. However, COVID-19 and locust invasion have contributed to job losses, increased humanitarian needs and will lead to poverty and income inequality.

If the pandemic persists until the end of 2020, growth is projected at 0.2 per cent which is still above Africa’s predicted average of -1.7 per cent and -3.4 per cent under …