East Africa’s economic growth is projected to rise to 4.1 per cent in 2021, up from 0.4 per cent in 2020, the African Development Bank (AfDB) said on Thursday.
According to the East Africa Regional Economic Outlook 2021, the economic performance will be boosted by the ongoing global economic recovery.
“However, the slow rollout of COVID-19 vaccines and risks of spikes in infections could dampen that outlook. The pandemic has had diverse impacts across the region, with countries highly dependent on tourism being the hardest hit,” the bank said.
The report by the pan-African bank (AfDB) reviews the economic performance of countries including Burundi, Ethiopia, Kenya, Rwanda, Sudan, Tanzania and Uganda.
The 2021 regional economic outlook analyzes economic growth, its drivers, and implications for socioeconomic outcomes, including poverty, employment, and income inequality, considering the impact of the COVID-19 crisis.
According to the report, the East Africa region remains resilient and was the only region in Africa to avoid a recession in 2020.
The AfDB attributes East Africa’s resilience last year amid the COVID-19 pandemic to relatively higher economic diversification and the rapid policy responses initiated by governments to counter the impact of the pandemic
The findings indicate that East Africa is expected to experience a stable economic recovery from 2021 up to the medium-term horizon.
The pan-African bank (AfDB) recommends a raft of policy interventions required to accelerate the region’s recovery and build resilience in the wake of COVID-19, including ramping up vaccinations and designing and implementing economic stimulus packages and recovery strategies toward credible fiscal consolidation programs.