⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Sub-Saharan Africa GDP to grow 3.3% this year, 3.5% in 2022 -World Bank

Published 10/06/2021, 07:48 AM
Updated 10/06/2021, 07:50 AM
© Reuters. FILE PHOTO: A woman shops at a supermarket in Nairobi October 23, 2008.  Economic growth in sub-Saharan Africa will dip to 6 percent in 2008 and 2009 due to tough global conditions, while inflation is seen rising to 12 percent this year, the International

By George Obulutsa

NAIROBI (Reuters) - Sub-Saharan Africa's economy is expected to grow by 3.3% this year and 3.5% in 2022, buoyed by rising commodity prices, the lifting of some anti-coronavirus restrictions and a pick-up in global trade, a World Bank report said on Wednesday.

It said sub-Saharan growth would rise to 3.8% in 2023.

Like elsewhere around the world, sub-Saharan Africa imposed restrictions on movement in the first quarter of last year to limit the spread of COVID-19, throttling trade and other key economic activities including tourism and transport.

The World Bank report said growth could turn out to be higher at 5.1% in 2022 and 5.4% a year later depending on how fast COVID-19 vaccinations were rolled out, while a slower inoculation rate would reduce growth projections.

"Slower vaccine delivery and coverage would impede the relaxation of COVID-19 disruptions in economic activity and project growth to slow down to 2.4% in 2023," the bank's Africa's Pulse report said.

The last Africa's Pulse report issued in April had forecast growth of 2.3%-3.4% this year, after an estimated contraction of 2.0% in 2020.

While many developed economies have gradually reopened thanks to vaccination campaigns, the pace of inoculations in Africa has remained slow. There is concern that continued threats posed by variants of the coronavirus such as Delta may leave African nations trapped in cycles of on-off lockdowns.

As of Wednesday, Africa had registered 8.45 million COVID-19 infections and 212,000 deaths, according to a Reuters tally.

According to WHO Africa, as of end-September, half the 52 African countries that had received COVID-19 vaccines had fully vaccinated just 2% or less of their populations.

The World Bank said the economies of Angola, Nigeria and South Africa were expected to come out of recession this year.

Oil-producing Angola was seen growing by 0.4% in 2021, after five consecutive years of recession, the report said.

Nigeria's growth was expected to be 2.4%, driven by services, while South Africa - the most industrialized economy in Africa - was projected to grow by 4.6% on the back of better performance in services, industry and agriculture.

The bank said non-resource-rich countries were also expected to rebound strongly, with Ivory Coast's economy expected to expand 6.2% and Kenya's 5.0% this year.

It said sub-Saharan Africa had witnessed a jump in public debt during the pandemic, with the region's average general government gross debt projected at 71% of gross domestic product for 2021, up 30 percentage points since 2013.

© Reuters. FILE PHOTO: A woman shops at a supermarket in Nairobi October 23, 2008.  Economic growth in sub-Saharan Africa will dip to 6 percent in 2008 and 2009 due to tough global conditions, while inflation is seen rising to 12 percent this year, the International Monetary Fund said on Thursday.  REUTERS/Antony Njuguna (KENYA)

"Increased funding on commercial terms, partially reflecting the recent surge in Eurobond issuances, has raised the exposure of sub-Saharan African countries to interest rate, exchange rate and rollover risks," World Bank said.

The bank said other challenges to the region's economic outlook included rising inflation and climate change. Despite sub-Saharan Africa being the smallest contributor to world carbon emissions, it was hardest-hit by climate change.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.