from MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) – EAST Africa’s economic growth is forecast to recover to an average of 4,1 percent in 2021.
This is up from 0,4 percent posted in 2020.
This is according to the African Development Bank’s (AfDB) latest economic outlook report for the region.
In 2022, AfDB projects regional average growth to reach 4,9 percent.
The flagship report, reviews the socio-economic performance of 13 countries, namely Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania and Uganda.
According to the report’s findings, COVID-19 containment measures and global supply and demand disruptions hit businesses and livelihoods hard and increased poverty.
Political fragility in some countries and limited economic diversification in others were significant impediments to growth.
According to AfDB, while East Africa is undergoing a shift toward a more service-oriented economy, some countries are experiencing de-industrialisation.
To accelerate recovery and build post-COVID-19 resilience, its report recommends that countries accelerate structural transformation through digitalisation, industrialisation, economic diversification and consolidating peace, security and stability.
The outlook report projects a full recovery from 2023, due to the increased roll-out of vaccines, recovery in the global economy, rising commodity prices, and growing economic diversification in the region.
– CAJ News