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Oliver Kazunga, Senior Business Reporter
THE African Development Bank (AfDB) says Africa’s economic growth prospects are bullish with a 3,4 percent projection this year despite the Covid-19 challenges and debt burden facing most economies on the continent.
In its 2021 Economic Outlook report launched last Friday, the regional financier noted that the economic impact of the pandemic varies across economic characteristics and regions, but the projected recovery is broad-based.
“Despite the challenging backdrop of a global pandemic and external economic shocks, Africa is expected to recover from its worst recession in half a century and reach 3,4 percent growth in 2021,” said AfDB.
The average debt-to-Gross Domestic Product (GDP) ratio for Africa is expected to climb by 10 to 15 percentage points in the short to medium term fuelled by the surge in governments’ spending and the contraction of fiscal revenues as a result of the contagion.
The outbreak of the Covid-19 pandemic in December 2019 has taken a massive toll on Africa, hitting tourism-dependent economies, oil-exporting economies and other-resource intensive economies the hardest, as well as deepening inequality.
– @okazunga
Online Reporter