Rédaction Africa Links 24 with Burundi Times
Published on 2024-04-09 09:53:39
The economic outlook for Sub-Saharan Africa is showing signs of improvement, with increased private consumption and declining inflation supporting a rebound. However, the recovery remains fragile due to various challenges such as global economic uncertainties, rising debt service obligations, natural disasters, and escalating conflict and violence. The latest Africa’s Pulse report from the World Bank emphasizes the need for transformative policies to address deep-rooted inequality in order to sustain long-term growth and effectively reduce poverty.
According to the report, the region is expected to see growth rebound in 2024, with projections showing an increase from 2.6 percent in 2023 to 3.4 percent in 2024 and 3.8 percent in 2025. While inflation is decreasing in most economies, it remains high compared to pre-COVID-19 levels. Additionally, public debt growth is slowing, but many African governments are still struggling with external liquidity issues and unsustainable debt burdens.
Despite the projected growth, the pace of economic expansion in Sub-Saharan Africa is still below the levels seen in the previous decade and is not sufficient to significantly reduce poverty. Structural inequality, among other factors, hinders the impact of economic growth on poverty reduction in the region compared to other parts of the world.
The report highlights that there is a need for policies that expand the productive capacity of the private sector to create more and better job opportunities for all segments of society. External resources for African governments are shrinking, making it more challenging to meet financing needs, especially in the face of political instability and geopolitical tensions that can hinder economic activity.
Inequality in Sub-Saharan Africa remains high, with disparities in access to basic services, markets, and income-generating activities. Structural constraints across the economy contribute to this inequality, and addressing these constraints is essential for a more prosperous future for the region.
Africa’s Pulse recommends several policy actions to promote stronger and more equitable growth, including restoring macroeconomic stability, supporting market access, and ensuring that fiscal policies do not disproportionately burden the poor. These measures aim to create a more inclusive and sustainable economic environment for Sub-Saharan Africa.
Overall, while the economic outlook for the region is improving, there are significant challenges that need to be addressed through coordinated policy efforts to ensure long-term growth and poverty reduction. The World Bank’s Africa’s Pulse report provides valuable insights into the current economic landscape of Sub-Saharan Africa and offers recommendations for fostering a more equitable and resilient economy in the region.
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