A new report has claimed that Africa's general economic performance will continue to recover, whereas the overall continent's gross domestic product is projected to accelerate to 4 percent in this year and 4.1 percent in the next year.
The report dubbed 2019 African Economic Outlook report was launched on Tuesday by the African Development Bank (AfDB) at the 54th AfDB Annual Meetings in the Equatorial Guinean capital Malabo provides data on Africa's economic performance and outlook.
"Africa's general economic performance continues to improve, with gross domestic product growth forecasted to grow at an impressive rate, however, it remains insufficient to address the structural challenges of persistent current and fiscal deficits and debt vulnerability," AfDB's director of research, Hanan Morsy said while unveiling the report, The New Times noted.
According to Morsy, Africa's GDP can increase to 4.5 percent annually by lessoning bilateral tariffs and eliminating non-tariff barriers. "The most significant decision by African political leaders last year was their collective willingness to move forward with Africa's economic integration. A borderless Africa is not just a political ideal; it is a cornerstone for a competitive continental market to accelerate GDP growth," Morsy cited.
AfDB's report 2019 African Economic Outlook claims that 40 percent of African countries are projected to see growth of minimum 5 percent in 2019, but the challenge is to achieve a higher growth path that is inclusive and pro-employment.
The report further revealed Africa's working-age population is projected to increase from 705 million in 2018 to almost 1 billion by 2030. The overall continent requires creation of about 12 million new jobs each year to obstruct the rising graph of unemployment. On the other hand, the GDP in East Africa increased by an estimated 5.7 percent in 2018, which is slightly less than 5.9 percent in 2017 and the highest among African regions.
Director Hanan Morsy lists the 3 policy actions that can increase GDP growth to 4.5% per year: - removing bilateral tariffs- eliminating non-tariff barriers - keeping rules of origin simple #2019AEO #AfDBAM2019 pic.twitter.com/9cmCqPypmR— African Development Bank Group (@AfDB_Group) June 11, 2019