At the core of African integration, the African Economic Outlook suggests that “a borderless Africa” is one of the key foundations of a competitive continental market that could serve as a global business center.”. This moderate acceleration is GDP growth is, therefore, forecast to rise from an estimated 0.8% in 2018 to 1.6% and 2.0% in 2019 and 2020, respectively. For African countries, a 10 percentage point increase in the share of capital goods in total imports could, five years later, reduce the share of primary goods by 4 percentage points, amplifying the effectiveness of diversification rooted in transferring technology and accumulating capital. Nigeria’s GDP will expand by 2.3 percent in 2019, which is below the rate of population growth, as the government struggles to reduce the nation’s oil dependence and attract foreign investment. Economic growth in Sub-Saharan Africa is estimated to have decelerated from 2.5 percent in 2017 to 2.3 percent in 2018, below the rate of growth of population for a fourth consecutive year. Higher economic growth brought with it positive trends in poverty reduction in both urban and rural areas. The economic recovery in sub-Saharan Africa continues. Mining was down by 6,1%, driven largely by a fall in the production of platinum group read more » Telecommunications, banking, and retailing are flourishing. Driven by the economic fallout of the COVID-19 pandemic, growth in Sub-Saharan Africa is predicted to fall to -3.3% in 2020, pushing the region into its first recession in 25 years. Growth in Central Africa is gradually recovering but remains below the average for Africa as a whole. CNN Explores Modern-day Africa With New-look Inside Africa, What Renewable Energy And Home Repair Have In Common, How Automation Is Changing The Landscape Of The African Labor Market, DRC Energy & Infrastructure Investment Summit 2021, Ms Campbell Becomes the Face of Kenya Travel, Niger Puts its Best Foot Forward with Exhibition, Somizi’s Cookbook Beats Jamie Oliver to ‘Highest Selling’ in South Africa. To dodge the informality trap and chronic unemployment, Africa needs to industrialize. For optimum experience we recommend to update your browser to the latest version. “East Africa, the fastest growing region, is projected to achieve growth of 5.9 percent in 2019 and 6.1 percent in 2020 (table 1.2). The Continental Free Trade Agreement (CFTA) can offer substantial gains for all African countries as new and timely analytics show. Africa’s economic growth continues to strengthen, reaching an estimated 3.5 percent in 2018, about the same as in 2017 and up 1.4 percentage points from the 2.1 percent in 2016. In the medium term, growth is projected to accelerate to 4 percent in 2019 and 4.1 percent in 2020. Your browser is not up-to-date. East Africa remains the continent’s growth hotspot, with regional output seen expanding by 6% in 2020. Real GDP rose by 4.9 percent a year from 2000 through 2008, more than twice its pace in the 1980s and ’90s. Bold reforms, especially at the institutional level, can synchronize financial governance frameworks across Africa and remove any remaining legal restrictions to cross-border financial flows and transactions. The forecast for 2019 is 0.5 percentage point lower than in the April WEO, largely due to the downward revision to the forecast for Iran (owing to the crippling effect of tighter US sanctions). World Bank report indicates South Africa GDP growth will expand by 1.3% in 2019 A slash in expected GDP numbers makes 2019 a somber year for the economy. Africa’s sustainable economic and social transformation is a global priority. These region wide numbers mask considerable differences in the growth performance and prospects of countries across the region. The AfDB’s 2019 African Economic Outlook says that, while North Africa leads in terms of growth recovery, East Africa is still the most dynamic region in the continent. Growth remains insufficient to address the structural challenges of persistent current and fiscal deficits and debt vulnerability. And though lower than China’s and India’s growth, Africa’s is projected to be higher than that of other emerging and developing countries. Further, it also compares the share of the global GDP pie taken by key countries and regions over time. East Africa remains a key driver of the continent's aggregate growth. WASHINGTON, April 8, 2019 – The growth story in Sub-Saharan Africa in the past few years has been one of faltering recovery from the worst economic crisis of the past two decades. The African Continental Free Trade Area is a landmark achievement, in the context of the continent’s long and rich history, in fostering regional integration to unify the continent. Agriculture was the main drag on growth in 2019, followed by construction, mining and manufacturing. Africa's GDP growth is projected to accelerate to 4.0 percent in 2019 and 4.1 percent in 2020 - but improved macroeconomic and employment outcomes require industry to lead growth, according to the 2019 African Economic Outlook report. Trade in electricity would bring many benefits, especially to small countries, if the hard infrastructure is at scale and functioning—and if soft infrastructure (logistics) is trustworthy. But in several countries, notably Burundi and Comoros, growth remains weak due to political uncertainty. If you are interested in telling stories in an impactful way to shine a spotlight on a particular issue, please email email@example.com. - eliminating all applied bilateral tariffs in Africa; - keeping rules of origin simple, ﬂexible, and transparent; - removing all nontariff barriers on goods and services; - implementing the World Trade Organization’s Trade Facilitation Agreement to reduce cross border time and transaction costs tied to nontariff measures and ; - negotiating with other developing countries to reduce their tariffs and nontariff barriers, by 50%. UNECA April 2020 (ECA, 2020) Africa’s GDP growth prospects are likely to drop from 3.2% in 2019 to between 1.8% and -2.6% in 2020 depending on policy response. Statistics South Africa (StatsSA) reported on June 4 that the South African economy contracted by 3.2% quarter-on-quarter (q-o-q) during the first quarter of 2019 – the biggest decline in 10 years. Skyline of Addis Ababa, Ethiopia. The expected recovery, however, is at a slower pace than previously envisaged for about two-thirds of the countries in the region, partly due to a challenging external environment. The countries with the highest economic growth are Ethiopia, Rwanda, Tanzania, Kenya, and Djibouti. Key factors impeding industrialization, particularly manufacturing growth, are limited firm dynamism. We support the implementation of the African Union’s strategic vision at continental, regional, national and local levels by co-producing cutting-edge data and analysis with our African member states and partners, and facilitating an open dialogue on policies to accelerate that transformation. Reviving Africa’s industrialization requires a commitment to improve the climate that supports firm growth. South Africa’s economic outlook has improved. It is supported by recovering commodity prices and higher agricultural output. And the financial and banking sector should be under careful supervision by a unionwide independent institution. African regions. This quarter’s GDP figures also provide an overview of the latest calendar year. The growth story in Sub-Saharan Africa in the past few years has been one of faltering recovery from the worst economic crisis of the past two decades. Breaking Down Global Growth in 2019. As of 2007, growth in Africa had surpassed that of East Asia . Blue Economy Movement Gains Traction in Africa, Challenges and Best Practices for Productive Use of African Micro-grids, Study: Africa’s Biggest “Digital Divide” Lies In Its Rural Areas, Property and Lifestyle in Blouberg Cape Town, 5 Top Opportunities for Investment in Djibouti, The Road To Achieving Internet Access For All In Africa. Vigorous public finance policy interventions are needed in tax mobilization, tax reform, and expenditure consolidation to ensure debt sustainability. And though lower than China’s and India’s growth, Africa’s growth is projected to be higher than that of other emerging and developing countries. With an estimated population of 200 million, the West African country boast of $376.284bn in GDP, making Nigeria the highest GDP in Africa. ‘Africa’s economic growth remained stable in 2019’ Akinwumi Adesina. Implementing the TFA would increase the gains to about 4.5 percent of Africa’s GDP, or an additional $31 billion, bringing the total real income gains to $134 billion. Africa's economic growth in 2018 will continue in 2019 in sub-Saharan Africa, averaging 3.6% over the next two years, according to World Bank estimates. Source: Authors' compilation based on various sources reported in the references. Growth in sub-Saharan Africa is projected to remain at 3.2 percent in 2019 and rise to 3.6 percent in 2020. The annual African Economic Outlook report highlights economic prospects and projections for the continent as a whole and for each of the 54 countries. However, surveys suggest that citizens and businesses continue to view weak governance and corruption as serious problems in the region. A full set of updated growth projections will be released in May 2019, ahead of the Bank’s Annual Meetings in Malabo, Equatorial Guinea. This resulted in the economy being no larger in 2019Q1 than it was a year earlier. Offended by one-sided coverage of wars, disasters and disease, the founders of Africa.com created a website that provides a balanced view of Africa – current events, business, arts & culture, travel, fashion, sports, information, development, and more. As a result of the dismal Q4 performance, South Africa’s economy only grew 0.2% in 2019, its worst showing since the throes of global financial crisis in 2009, when it shrank 1.5%. As government introduces new legislation to further support small, medium and micro-sized enterprises (SMMEs), recently released data from the 2019 Annual Financial Statistics (AFS) survey shows the growing role that small businesses play in the formal business sector. Eliminating today’s applied bilateral tariffs would increase intra-Africa trade by up to 15 percent, but only if rules of origin are simple and transparent. (A 0.2 percent tariff on imports from high-income countries could bring in $850 million to finance trade facilitation projects.). Economic growth is pro-jected to remain strong, at 5.9 percent in 2019 and 6.1percent in 2020. GDP growth (annual %) - Sub-Saharan Africa from The World Bank: Data Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Externally, risks from uncertainty in escalating global trade tensions, normalization of interest rates in advanced economies, and uncertainty in global commodity prices could dampen growth. Growth in Africa has stalled; both the IMF and the World Bank have cut their 2019 economic growth projections for sub-Saharan Africa (SSA) to 3.5% and 2.8%, respectively, with growth in 2018 at 2.3%. Markedly slower growth in China and its effect on demand for Africa’s exports will, however, hold more serious economic implications for the continent. Africa’s “To develop cross-border supply chains, improving customs management and adopting simple and transparent rules of origin, are essential,” the report notes. In the medium term, growth is projected to accelerate to 4 percent in 2019 and 4.1 percent in 2020. One way to accelerate growth in the medium to long term and overcome the structural challenges is to shift imports to intermediate and capital goods and away from nondurable consumption goods. Thanks for reading and for your interest in Africa. ICBT is highest in in Eastern Africa and could be worth as much as 80 per cent of value of formal trade in some countries. The 2019 African Economic Outlook report analyses gains of regional public goods, including synchronizing financial governance frameworks, opening regional aviation to competition, and facilitating the free movements of people, goods, and services through open borders. To move to systemwide rules of origin and avoid product-specific rules of origin, regional economic community (REC) member countries should move to a single value added rule— say, 40 percent of value added from within the REC—with a more lenient threshold for less developed countries. African Economic Outlook 2019 Macroeconomic performance and prospects Jobs, growth, and ﬁrm dynamism Integration for Africa’s economic prosperity African Economic Outlook iii The state of the continent is good. Growth for 2019 is now projected at 0.8%, half a percentage point lower than April’s forecast and unchanged from 2018, according to the bank’s October Africa’s Pulse report. Growth is projected to remain strong in non-resource-intensive countries, averaging about 6 percent. Africa’s general economic performance continues to recover and GDP growth is projected to accelerate to 4.0 percent in 2019 and 4.1 percent in 2020. This forecast would change in the event of a deteriorating global economy. Gross domestic product (GDP) growth is “East Africa, the fastest growing region, is projected to achieve growth of 5.9 percent in 2019 and 6.1 percent in 2020 (table 1.2). “Manufacturing-driven growth has the highest impact on job creation,” Morsy said. South Africa's economy grew by an annualized 66.1 percent in the third quarter of 2020, recovering from a record 51.7 percent slump in the April-June period and easily beating market expectations of … Becoming An Investor In Nigeria: Where To Start? To harmonize payment systems, RECs should pursue stronger technological advances that facilitate movement of funds across borders. The country is blessed with abundant natural resources especially crude oil, which accounts for over 70 percent of its earnings. The economic outlook for Sub-Saharan Africa (SSA) is positive, with growth rising to 5.3% in 2012, and 5.6% in 2013, over the pre-crisis average level of 5%. If you are interested in telling stories in an impactful way to shine a spotlight on a particular issue, please email us. The share of the population living below the national poverty line decreased from 30% in 2011 to 24% in 2016. The 2019 report focuses on three key areas - Africa’s macroeconomic performance and prospects; Jobs, growth, and firm dynamism and Integration for Africa’s economic prosperity. It also provides relevant and essential reference material on Africa’s economic development, for researchers, investors, civil society organisations, and development partners. This figure is close to 20 percent of the new entrants to the labor force every year. Published annually since 2003, the African Development Bank’s flagship report provides headline numbers on Africa’s economic performance and outlook. East African nations are expected to experience mixed economic growth in 2019, an analyst said on Tuesday. Debt and deficit policies should be consistent across the union and carefully monitored by a credible central authority. But improved macroeconomic and employment outcomes require industry to lead growth, according to the 2019 African Economic Outlook report, launched today by the African Development Bank. Leading the way are six economies among the Economic growth in Sub-Saharan Africa is estimated to have decelerated from 2.5 percent in 2017 to 2.3 percent in 2018, below the rate of growth of population for a fourth consecutive year. The countries with the highest economic growth are Ethiopia, Rwanda, Tanzania, Kenya, and Djibouti. South Africa. Unlike many global publications, for nearly a decade we have been committed to showing a complete picture of Africa – not just a single story. Global growth is now projected to slow from 3.6 percent in 2018 to 3.3 percent in 2019, before returning to 3.6 percent in 2020. Thanks for reading and for your interest in Africa. Major commodity-exporting countries saw a mild uptick or a decline (Angola, –0.7 percent), while Nigeria and South Africa, the two largest countries, are pulling down Africa’s average growth. To close Africa’s infrastructure deficit, RECs could consider regional infrastructure bonds, while countries could further mobilize domestic resources and provide incentives for the private sector to join public–private partnership operations for regional public infrastructure. Although global economic output is recovering from the collapse triggered by COVID-19, it will remain below pre-pandemic trends for a prolonged period. Six West African countries [Côte d’Ivoire (3), Senegal (5), Burkina Faso (6), Ghana (8), Benin (9) and Guinea(10)] ranked in the top 10 in Africa in 2018 in terms of real GDP growth. Guest speakers included Kanny Diallo, Minister of Planning and International Cooperation for the Republic of Guinea and Alma Oumarou, Minister and Special Advisor to the African Union Champion for Regional Integration. Your browser is not up-to-date. East Africa led with GDP growth estimated at 5.7 percent in 2018, followed by North Africa at 4.9 percent, West Africa at 3.3 percent, Central Africa at 2.2 percent, and Southern Africa at 1.2 percent. This in turn would contribute to a broader rebound among commodity exporters, emerging … In has been AfDB experts say that regional integration is now more pertinent than ever in continuing the continent’s economic growth. 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