AfDB: African Economies to Recover by 3.4% in 2021

The African Development Bank (AfDB) said African economies are expected to grow at a rate of 3.4% in 2021, as the continent recovers from its worst economic crisis due to the COVID-19 pandemic.

AfDB said, in its Economic Outlook for 2021, that the 54 economies shrank by 2.1% in 2020, as the crisis disrupted economic activity across the African continent.

"The expected recovery at the continental level does not eliminate the risk of increased poverty," the bank added in its report.

[caption id="attachment_221605" align="aligncenter" width="1500"] President of AfDB Akinwumi A. Adesina during a virtual meeting on African economies, March 12, 2021. AfDB[/caption]

The bank said an estimated 39 million Africans are likely to slide into extreme poverty as a result of the COVID-19 pandemic, after 30 million were pushed into that category last year.

The African bank pointed out that countries with low educational levels, few assets and informal jobs are most affected during the crises and 'must be protected', as governments boosted their spending, which put pressure on budget balances and debt burdens amid shrinking fiscal revenues.

"The average debt-to-GDP ratio of Africa is expected to increase by 10 and 15% in the short and medium term, respectively" the bank said.

"The priority must be given to Africa's debt burden and not be ignored. Now is the time for a final debt relief for Africa," AfDB stressed, calling on the international community to work with policymakers on the continent to help it cope with the debt burdens that have become heavier.