A World Bank report says Sub-Saharan African economies are set to weather the economic storm created by the COVID-19 pandemic because of the slower spread of the virus, lower mortality rates, strong agricultural growth and a faster-than-expected recovery in commodity prices.
The report shows economic recovery will be faster for African countries that deepen reforms and embrace digital technology.
Growth in the region is forecast to rise between 2.3% and 3.4% this year. World Bank Chief Economist for Africa Albert Zeufack says ambitious reforms that support job creation and digital technology will be key to boosting efforts for economic recovery across the continent.
“African countries have made tremendous investments over the last year to keep their economies afloat and protect the lives and livelihoods of their people,” says Zeufack.
He adds that “Ambitious reforms that support job creation, strengthen equitable growth, protect the vulnerable and contribute to environmental sustainability will be key to bolstering those efforts going forward toward a stronger recovery across the African continent.”
“We predict that the COVID-19 will be milder than anticipated. Economic activity in 2020 in Sub Saharan Africa and that’s on the lower end of the projection range than one year ago and this is clearly better than expected, and this is due to stronger agricultural growth and also faster than expected commodity prices.”
The Bank hosts a virtual briefing to launch The Future of Work in Africa report:
The World Bank’s latest Africa Pulse, The Future of Work in Africa report indicates that economic growth in Sub-Saharan Africa is estimated to have contracted by 2.0% in 2020.
The Bank says the second wave of COVID-19 infections is partly dragging down the 2021 growth projections.
It says for most countries in the region, activity will remain well below the pre-COVID-19 projections at the end of 2021.
Source: SABC News (sabcnews.com)