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The African Development Bank (AfDB) projected 4% GDP growth for Africa



Chronicle

Natasha Chambba, business journalist
The African Development Bank (AfDB) forecasts a four percent growth in gross domestic product in Africa this year, which is expected to accelerate to 4.1 percent in 2020.

In its economic report for 2019, the bank noted that the anticipated growth prospects of the continent would be fueled by the continued recovery of general economic results.

"Africa's growth prospects remain stable, but improved macroeconomic and employment outcomes require the industry to grow," the report said.

"Overall economic performance in Africa continues to heal, and GDP growth (Gross Domestic Product) will increase to four percent in 2019 and 4.1 percent in 2020."

The report, published once a year since 2003, is the bank's leading document, which provides headlines on Africa's economic performance and perspectives.

The African economic perspective bridges a significant gap in the knowledge of African economies through a regular, rigorous and comparative analysis.

The 2019 report focuses on three key areas that are Africa's macroeconomic performance and perspectives, employment and dynamic dynamics and the integration of Africa's economic prosperity.

Significantly, the report identified five key trade policy actions that could potentially bring Africa's total benefits to 4.5 percent of GDP or $ 134 billion a year.

The identified policies include the elimination of all applied bilateral tariffs in Africa, maintaining the rules of origin simple, flexible and transparent, removing all non-tariff barriers to goods and services and negotiating with other developing countries to reduce their tariffs and non-tariff barriers by 50 percent .

Commenting on the report, the Director of the African Directorate for Forecasting and Research on Macroeconomic Policy, Mr. Hanan Morsi noted that despite the increase in national debt in Africa, there was no systemic risk of a debt crisis.

"In the current growth rate of the labor force, Africa needs to create around 12 million new jobs each year to prevent rising unemployment.

"Efforts are needed to align with industrialization based on states," he said.

Last year, the AFBF, through the African Development Fund, awarded a $ 4.1 million grant to Zimbabwe, and part of it was used to reform three state-owned enterprises.

– @queentauruszw


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