African Economic Outlook: Growth recovery projected at 3.4% in 2021 (38.7 million people at risk of extreme poverty)
Africa’s Gross Domestic Product (GDP) is expected to recover to 3.4% in 2021 after contracting by 2.1% in 2020, according to the African Economic Outlook 2021. The African Development Bank (AfDB) report, launched on 12 March, says the continent suffered its worst recession in more than half a century last year due to the Covid-19 pandemic. The health and economic crisis has reduced GDP per capita by 10% in nominal terms, the paper said.
The recovery will be supported by an expected rebound in tourism, higher commodity prices and an easing of pandemic-induced restrictions. It should therefore reverse the trend of weakening macroeconomic fundamentals in the continent’s countries in 2020.