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Growth: World Bank projects economic recovery of between 2.3 and 3.4 percent for sub-Saharan Africa in 2021

06/04/2021
Categories: Economy/Forex

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      Faced with the coronavirus crisis, African countries have put in place different measures in order to respond effectively to the threat of the pandemic. In 2020, sub-Saharan Africa is estimated to have experienced an economic contraction of about 2%. Sub-Saharan Africa is expected to experience economic growth of between 2.3 and 3.4% this year, according to the World Bank in a statement on Wednesday, March 31, 2021.

The region's economic recovery is expected to come despite the overall recession estimated at 2% in 2020. It is due to the effects of covid-19 on the various sectors of activity. Faced with the spread of the virus, countries have indeed been forced to take restrictive measures; this slowed down the activity of the various sectors, but also trade and consumption.
The World Bank states in its report entitled "The Future of Work in Africa: Emerging Trends in Digital Technology Adoption" that the economic recovery in sub-Saharan Africa will be driven by economic factors, but also health factors. These include the resumption of activities in the agricultural sector, and the efforts put in place by governments to control the spread of the coronavirus. Indeed, if Kenya, Ivory Coast, Botswana and Guinea for example are expected to experience a strong recovery, other countries on the other hand will have lower growth. This is because the first countries will benefit from the expected rebound in private consumption and investment.

Specifically, the institution indicates that economic growth in Eastern and Southern Africa is expected to be 2.6% in 2021, and 4.0% in 2022, after a global recession of 3% in 2020, mainly due to South Africa and Angola. For the West and Central Africa sub-region, the Bank forecasts growth of 2.1% in 2021 and 3.0% in 2022, following a recession of 1.1%. For an optimal recovery of the economy, the institution says it is important to put in place "ambitious reforms that support job creation, strengthen equitable growth, protect the vulnerable and contribute to environmental sustainability. They will be essential to support efforts towards a stronger recovery across the African continent in the future." It also implies policies to improve productivity and a search for competitiveness of economic sectors.

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